Want to Grow Purchase Mortgage Volumes? Make Friends With a Realtor®

By Tina Powers, CU Realty Services

To increase first mortgages at your credit union, who you know matters – especially if it’s a Realtor®.

That’s one premise of a soon-to-be released white paper by CU Realty Services, “Realtors: Friend or Foe? A Study of Credit Union Fears and Success in Protecting Members’ Mortgage Business.”  The paper, based on the CUSO’s recent client survey and other research, highlights the importance of positive Realtor partnerships in growing credit unions’ purchase mortgage market share.

In January 2013, CU Realty surveyed nearly 200 credit unions currently using its real estate services program to gain their perceptions of Realtors and the impact agents could have on growing their purchase mortgage business. For its part, CU Realty has made establishing good relationships with Realtors a key feature of its program; when lenders and real estate agents work well together, the program can act as an active mortgage lead channel. This is supported by a growing body of data showing that agents play a vital role in today’s home purchases. According to the National Association of Realtors®, 89 percent of all real estate transactions in 2012 involved a real estate agent.

CU Realty Services’ survey results reiterated the significance of having strong partnerships with agents. Among those surveyed, 79.4 percent considered their Realtor relationships as “critical” or “very important,” and the balance of respondents rated them “somewhat important.” In the words of one respondent: “The most value we see is partnerships with agents who are knowledgeable and provide great experiences to our members and know our way of business.”

In the past few years, more credit unions have increased their purchase mortgage portfolios by aligning their lending efforts with building strong Realtor relationships. But taking full advantage of these relationships goes beyond having a quality Realtor referral list. By reaching out and engaging agents as part of your team, both your credit union and its members have a key resource to help in the home buying/selling process.

When developing a real estate agent partnership, CU Realty Services recommends these tips:

• Keep communication lines open.  Not only is it critical that agents understand credit unions’ mission and operating philosophy, but credit unions also need to understand how Realtors’ work . Make sure your business values are in alignment and both sides share similar goals. Encourage open communication, and meet regularly with partner agents to discuss how the program is working and ways it may be improved.
• Make benefits a two-way street.  For relationships to flourish, they should be mutually beneficial. Just as credit unions expect to see growth in their first mortgage business through partnering with agents, Realtors expect to grow their leads. Make sure your program is designed to benefit both sides and, ultimately, your members.
• Develop strong marketing efforts and promotions.  Getting the word out to members about your Realtor program will require ongoing marketing and promotional support. Make it part of the marketing budget and promote agent involvement when possible. Some tactics include handing out agent business cards or brochures to members inquiring about the program, listing agents and their bios on your website, and inviting Realtors onsite to present home-buying seminars or host Realtor on Duty programs. Promote the Realtor network as bringing real value to your members – in many cases, it can set your credit union apart from the competition.

Overwhelmingly, the credit unions surveyed consider positive real estate partnerships an important piece of their mortgage-growth efforts. Among clients working with agents in CU Realty’s own Realtor network , 97.1 percent believe agents provide responsive service, 93.9 percent believe they are professional and ethical, and 81.3 percent believe they always help the credit union retain a members’ mortgage loan.

One common theme CU Realty hears from participating credit unions is that working with loyal realtors helps keep mortgage loans with the credit union, and there’s real value in giving members access to hand-picked, interviewed real estate agents.

With the real estate market seeing an uptick in many communities, now is the time to make friends with a Realtor.