Don’t ‘Mortgage’ Your CU’s Future; Make Mortgages Your Future

by: Keith Varney, President, TruHome Solutions

CUSOs make mortgages easy, smart choice

If all the recent headlines about Fannie Mae, Ginnie Mae & Freddie Mac and the seemingly ever-changing complex mortgage procedures make you happy your credit union isn’t offering mortgages, it’s time to reassess! Mortgages are a pivotal product for nearly every credit union member, and the benefits of offering mortgages far outweigh any negatives. Springtime is traditionally when many consumers begin to house hunt, and mortgage hunting often happens first.

“Mortgages are a highly profitable product,” said Keith Varney, President, TruHome Solutions (a full-service mortgage CUSO). “And not just monetary profit. Mortgages have proved to deepen member relationships, create longer tenured members and increase services per household.”

And if you’re not offering them, you’re letting highly profitable business walk right out the door, giving the competition a chance to build a stronger relationship with your members.

No More Excuses
Complexity is what credit unions commonly cite as the reason they choose not to offer mortgages. But that reason is causing millions – if not billions – of dollars to move to the competition, when there’s a solution right in front of you: CUSOs!

“Recent programs like President Obama’s HARP 2 are adding to the confusion, with many assuming one direction is the clear and right choice for all financial institutions, without taking into consideration all risks,” adds Varney. “We’re assessing this and any mortgage-related changes on behalf of our credit union clients so they can make the right decisions for their credit union, taking out the guesswork so they can focus on their day-to-day operations.”

As a former bicyclist for charitable causes, Varney sees a clear analogy to how CUSOs can serve their clients.

“You would never go to a Kmart for a competitive bicycle to compete in the Tour de France, because they don’t have the right products, expertise or understanding to help you succeed,” adds Varney. “CUSOs help outfit you with the right vehicles to fit your needs, and help you avoid unforeseen hills or new twists in the road, for long-term sustainability and success.”

Sure, mortgages are more complex than bicycles, but CUSOs were designed by credit unions for credit unions with the express purpose of helping you build stronger, deeper relationships with your members.
Allowing CUSOs to be your advisor as you evaluate your next step in building or expanding your mortgage solutions is just smart business. They will help you gain the most a mortgage program can offer your credit union, and can find a program that is tailored to you and your members.

“CUSOs are collaborators in offering mortgage services to your credit union’s membership, with customized mortgage programs to serve all credit unions,” said Varney. “For credit unions with larger mortgage volume, CUSOs can offer a private-label mortgage program branded with your credit union’s trusted name and logo. This means your mortgage program comes directly from your credit union, not a third-party company or bank. Again, the right fit for you and your members.”

And for credit unions with smaller mortgage volume, CUSOs can provide a full-service mortgage solution to serve your members and your credit union.

“Major news outlets like The New York Times, MSNBC and countless others have been touting credit unions and community banks as a better alternative for consumers’ banking needs, including mortgages,” adds Varney. “But we must deliver on the promise to be a viable, comprehensive option for our members and prospects looking for better rates. One-stop shop means your members don’t have to go elsewhere  to get the products they need to live a full financially satisfying life.”

Ready for long-term success?
“With truly collaborative CUSOs, you decide your level of overall involvement with the mortgage process, then we deliver,” added Varney. “With you in control of pricing and our minimal closing costs, your members typically save hundreds or even thousands of dollars on their loan. This is really good for business, member loyalty and advocacy.”

Competition for consumers today is fierce, and being outfitted for success with the right products at the right time is critical for long-term success. With CUSOs, your credit union staff will have the support of advisors and experts in the mortgage business to help your credit union grow its mortgage loan production and revenue. Call a CUSO that specializes in mortgages — and start planning a path to success.

Keith Varney is President of TruHome Solutions, a Credit Union Mortgage Service Organization, providing a full range of  private label services to credit unions (including sub-servicing),located in Lenexa, Kan.  www.truhomesolutions.com