Press
CMG MI Exec To CUs: ‘Make Your Own Mortgage Lending Opportunities’
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From CUNA Mutual Group Public Relations
www.cunamutual.com
For more information:
Phil Tschudy 608/231-7188 philip.tschudy@cunamutual.com
Marisa Rawling 415/284-2519 marisa.rawling@cmgmi.com
MADISON, Wis. – Amid the continuing slump in housing markets and lenders scrambling for market share, credit unions are finding it difficult to grow their mortgage lending business. This difficult environment requires they make their own opportunities, a CMG Mortgage Insurance Company (CMG MI) regional sales director, told an Online Discovery audience Tuesday.
Ira Oskowsky, who heads CMG MI’s eastern sales division, told breakout session attendees mortgage lending is key to keeping members from defecting to banks over the long run.
“When credit unions don’t offer mortgages, a bank can move in quickly to persuade members to transfer all their business,” Oskowsky said. “And if the credit union does offer mortgages, it needs to do it competitively. Not just with pricing, but with products, ease of use, and by building a relationship with your local real estate agents.
“The American Credit Union Mortgage Association reported that over the last three years, credit unions’ share of the market climbed to just under 10 percent but tumbled back down rapidly to about 3 percent,” he continued. “How can we climb back up? By making our own opportunities and not just relying passively on member loyalty to see us through.”
Among the best practices Oskowsky recommended in the session, “Credit Union Mortgage Lending During Difficult Times,” were:
- Putting real estate lending at the center of the credit union’s strategy
- Creating a team of loan officers to proactively approach members and real estate agents
- Expanding the product mix to include more first-time homebuyer programs, specialty products and portfolio options
- Thinking about the way people shop for mortgages and homes, and adjusting your credit union’s schedule accordingly (weekend hours, online mortgage apps)
- Initiating new relationships – or enhancing existing ones – with mortgage aggregators
- Stepping up and accepting the role of home finance expert in advising members
Oskowsky asked if mortgage lending is really a good option for credit unions in this housing market.
Mortgage loans will always have some of the highest margins compared to other investments, he said. “As for risk, if you mitigate it effectively, then mortgages actually represent the lowest risk of any investment. Develop your strategy carefully, but recognize that mortgage lending, handled wisely, can be the best way to replenish liquidity, improve member relationships and win business away from banks. Becoming full-service credit unions is the future for our industry.”
Online Discovery is CUNA Mutual’s Web-based equivalent of a face-to-face conference without the associated expenses or time away from the office. The free, virtual event attracted a national and international audience of more than 1,800 credit union and league staff. The conference’s future-focused content aims to help credit unions solve problems, face challenges and address opportunities.
CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual Group’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s Web site at www.cunamutual.com.
CUNA Mutual Group is the marketing name of CUNA Mutual Insurance Society, its affiliates and subsidiaries, including CUMIS Insurance Society, Inc. Product availability and features may vary by jurisdiction and are subject to actual policy language. Corporate headquarters are located in Madison, Wisconsin.