What’s Your Credit Union’s Plan for 2013?
by Bob Dorsa
It’s that time again, planning for a New Year. The process seems to be about the same as in the past but the stakes seem so much higher and uncertainty remaining in key issues leaves a lot for discussion.
Attracting new members and strategic growth products and services are at the top of the list for most CUs. Easy to say but how exactly does your organization achieve that?
We know the regulatory climate will be challenging and expensive at the very least. In my opinion CUs have always been good dealing with changes and new requirements to remain compliant. Many of the NEW regulations that will define mortgage lending in the next several years including the CFPB and the final implementation of Dodd-Frank will unfold in 2013. Remember compliance is a must but it is imperative to embrace the challenges. I firmly believe reaching more consumers through a “home finance relationship strategy” is a key to growth and prosperity in the future. Here are some of my suggestions as to hat to focus on!
We have known for many years when your credit union provides and secures a home loan transaction, your relationship with that members expands by a factor of four to five products and is much more profitable for the credit union overall. The details to achieving results for this aspect of your business begins with your ability to attract the best people you can for the loan origination process and following through with quality and timely services. We are likely to see continuing refinance activity with member home loans as rates likely to remain low for as many as two more years at the minimum. However we must NOT lose sight that the long-term strategy needs to evolve to working with Realtors® and the home-buying transaction. Here you have the opportunity to reach out in the communities you serve to help more people and gain new members for the future. We have ALL felt the ongoing stress of the housing collapse for several years however we may be in store for what looks to be the real and true bottom and the beginning of an upswing in housing markets. This benefits your credit union since the 2011 HMDA (Home Mortgage Disclosure Act) indicate credit unions are gaining market share in home loans in approximately two-thirds of all metropolitan housing markets. Certainly this is a great building block to continue to position credit unions as a viable option for most home-buyers and also home sellers, many of who turn into buyers.
Once you have your staff and technology systems in place to effectively compete, the next strategy is to build the teamwork within the credit union to search every opportunity to identify and secure mortgage loan products with members. From the Executive Offices to Marketing and Advertising, to the entire Operational staff, all your employees MUST know your Credit Union IS in the home loan business. This may sound like a logical step, however if you dig around you will see why I mention this often overlooked task.
Other may say, our Credit Union does NOT possess the ability to find and compensate qualified staff or we cannot meet the compliance requirements to originate home loans. My suggestion to you is to affiliate with the resources you need to satisfy the needs of your members. You may still gain some of the products and services you will otherwise never see from your members. This is the silver lining to doing your sue diligence to identify the right resources you need. I noted a phrase in a business channel interview recently. The comment was you only have a limited number of options to acquire the resources your business needs to compete, you can “make, buy, or partner/cooperate” and I believe this first for the credit union mortgage lending model as well. All of the resources are available. It is your job to find the right ingredients to make it in this business. Like my dear Mother’s Italian sauce (“gravy for my Italian friends), just the right combination insures success.
Please start now as the next few years may well determine where your credit union will be a decade or more from now!
