Time to clean the windshield and look ahead
For mortgage-lending growth, credit unions must plan for success
Mortgage origination market share for credit unions rose significantly coming out of the financial crisis a few years ago. We celebrated increased business but wondered if credit unions could sustain their game—or would the “same old, same old” business practices of the Big Banks and Wall Street return to erode the gains we’ve made.
The answer is a resounding “no.”
Consumers in large numbers have begun to understand the difference between member-owned credit unions and stockholder-beholden banks. Confidence in credit unions continues to grow while trust in banks, especially their lending practices, still falters. And the banks themselves, subject to tighter regulation, have limited the loans they offer.
Opportunity abounds for mortgage-lending credit unions that put their members first. During our ACUMA events, I see the best and brightest of our industry making the investment to hear new ideas and network with their peers. They want to find ways to get better.
And although the rise in CU mortgage lending has proved to be more than a blip, to “get better” and continue to grow the business means planning for success. Yes, planning. And now—before 2017 budgets are set—is the right time for you to look ahead to 2017 (and beyond) with a positive attitude and a clear strategy.
It isn’t just the refi boom anymore, and you can’t get by with a patchwork of temporary workers to pitch in when you’re busy, for instance, or contracting for outside help with the pipeline when it’s full. Sure, tighter regulations have also put an extra burden on your staff, but that isn’t going to go away any time soon, either.
No it’s time to clean the windshield and look ahead to the destination instead of constantly checking the rear-view mirror.
And looking ahead means planning for success—growth in lending, not contraction. To do so, you need to examine your delivery channels and sales strategy; you must also ensure a proper level of operational support.
Think positive. Plan for growth (success) not just survival (status quo).
To succeed in mortgage lending, you need to answer “yes” to these three questions:
- Are you confident your member’s experience is what the member wants?
- Is your sales and marketing strategy going to bring business in the door?
- Operationally, are you prepared to meet regulatory and investor requirements while effectively managing all of the risks associated with them?
Do these three things right, and your credit union will reap the rewards.
