Mortgages are a major financial commitment, unlike shorter-term auto or recreational vehicle loans. Committing to a long-term loan can be an emotional process. Buyers save up a down payment, research neighborhoods and then find the perfect home. And when the buyer takes out a mortgage loan, they are placing tremendous confidence in the lender. After all, they’re buying their home.
If credit unions want to remain competitive and meet all their members’ lending needs, they should offer and promote mortgage services.
MEMBER RETENTION
Every financial institution that provides mortgages has a unique opportunity to strengthen its relationships with its members. For example, offering new members additional products like attractive checking and credit cards can simplify their lives.
If members can easily transfer their mortgage payments through a checking account, they save the time and trouble of dealing with multiple institutions. And, most people appreciate the wisdom of adding other value-add products and services to help them Increase their financial well-being, so it’s likely they would turn to the same institution for this product as well.
And the list goes on. Before you know it, you not only have members who trust you with their mortgages, but who are engaged with you in in multiple aspects of their financial lives.
When members use your credit union for securing a mortgage, they become even more connected. Obtaining a home loan can be stressful, but a mortgage professional who simplifies the process creates loyalty. You want that loyalty to be to you.
INCREASING REVENUE
Credit unions that don’t grow cannot continue to serve their members well. So, creating new streams of revenue is critically important to maintaining the promises you make to your members every day around contributing to their financial well-being.
Partnering with an outside resource to incorporate mortgages into a credit union’s service line is an incredibly effective way to increase revenue, and it’s essential to achieving meaningful growth. Mortgages create high retention rates that help increase core banking products, and more.
Promoting mortgage services will help your members be more aware that you offer these services which can create a steady stream of revenue as homes are bought and refinanced all year long.
BETTER PRODUCTIVITY
Anytime a business offers a new service, there is a natural shift in operations. You might need new staff, technology or processes. Adding mortgage products, of course, is no exception.
Because mortgages are a highly regulated financial product, integrating them with operations creates more work for the compliance team. Servicing the loan places a greater demand on online services and staff as well, and that’s why some credit unions choose to engage with a partner to help them meet increased needs. A partner can be the credit union’s behind-the-scenes engine that takes on the technology, compliance and staffing risks so they don’t have to.
Adding a mortgage product line doesn’t happen overnight, but the value of doing it is clear. It is a heavy load, and many credit unions find it difficult to make the service profitable without help from a trusted third-party. A CUSO can be a great partner for the process.
The good news is that a good CUSO can adapt to your credit union’s needs. Reliable, versatile CUSOs can enhance an in-house operation or become a full-service partner as you build mortgage offerings. Let TruHome take the hassle out of mortgage services, so you can bring your member’s home.
For more information on how TruHome can help with your mortgage servicing, visit https://www.truhome.com/lending-solutions/.