Thanks for Treating Me as a Friend

by Jim Jerving

The mortgage awards in the Excellence in Lending ceremony at CUNA’s Lending Council on November 5 were given in a year that has witnessed the start of a recovery in the housing market. As the housing market improves, so goes the economy, if predictions are true.  The award for assets less than $250 million was presented to Northeast Community CU, $80 million in assets.

Northeast Community CUElizabethton, Tennessee
This credit union serves rural communities around Elizabethton in a caring yet innovative way that harkens back to the original mission of financial cooperatives.

Their mortgage loan special is evidence of their approach. The organization realized that it could charge a flat $500 fee and still achieve a net gain over the life of the loan. They met with local attorneys and asked if they would also reduce their costs during the special promotion from $550 to $300. The attorneys agreed as did real estate agents and appraisers.

The promotion spurred growth from an average of 8 mortgages a month to 26 mortgages closed at $2.7 million during one month of the special. In three months during the special, the credit union closed about $8 million in mortgages.

Innovation need not be the province of large organizations with like budgets, according to Kathy Campbell, president and CEO.

“Our vendors frequently refer to us as early adopters, as we tend to embrace new technology and product lines quickly,” she says. “We use database mining, for example, to target members with existing home loans. Loan officers also contact members for whom they had recently done loans of any type.”

This personal contact helps cement the relationships with members and provides a foundation for member referrals. It also offers an opening to obtain more loans from members.

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