One of the best ways to build business agility and resilience in times of economic uncertainty is a future-looking strategy for how to scale your business and make the most of the services you’re able to provide your members. Now is the time to embrace new ideas, insights, and potential partnerships that can brace your credit union against downturns and allow it to soar in times of opportunity.
If, for example, you’re interested in bringing a new mortgage partner into your credit union (and you should be), it’s important to know what you’re looking for in a partner before you get a chance to meet one-on-one in a networking setting. We don’t recommend grilling a potential mortgage partner in a rapid-fire interview style, but there are crucial questions you’ll want to ask to understand whether their services would be a good fit for your needs.
We developed seven questions that you can ask potential mortgage partners to help determine whose partnership is right for you:
- Does your company provide private labeled servicing?
Some mortgage partners, especially nationally-known lenders, may offer your members a satisfactory servicing experience, but they do so under their prominent branding. Private labeled servicing, on the other hand, means your brand is front and center through each touchpoint. A private-label experience keeps your credit union’s name and branding at the forefront through every step of the process, which is less confusing, more intuitive, and more comforting for your members. Imagine your credit union name and logo online and on all member communications — even on sold loans.
- Do you offer lead generation or other marketing services?
Considering less than 10% of credit union members go through their credit union for a mortgage, simply having the ability to offer mortgage services without promoting those services won’t get you very far. Many members don’t even realize their credit union offers mortgage products, so they look elsewhere when they begin to search for a home loan. The most effective mortgage partners provide lead generation and marketing services that analyze member data and target the members whose behavior indicates they’re most likely to buy a home in the near future.
- Do you offer government lending services, like FHA, VA, and USDA loans?
Government mortgage loans, or those backed by the U.S. government instead of private lenders, offer mortgage options for potential borrowers who may not qualify for traditional home loans. That means the availability of government lending services may significantly increase the number of members who are able to qualify for a mortgage through your credit union — as long as your mortgage partner offers government lending. Look for a partner that provides government lending solutions to maximize your opportunities.
- What type of technology investments do you prioritize?
In the digital transformation era, state-of-the-art technology is key for member experience, maximum growth, scalability, and custom mortgage solutions. Listen for tech stacks that include digital dashboards that allow your members to stay connected to their mortgages in real-time and mortgage portals that provide full access at any time, from anywhere. Listen, too, for talk of technologies that integrate with your member databases and can identify members who might be interested in buying a home before they ever apply for a mortgage by analyzing their behavior. These investments allow you to quickly and securely create model audiences on which to focus and allow you to provide members with quick, personalized responses to their questions. Also, look for a mortgage partner who enthusiastically talks about how they plan to evolve their tech stack in the near future. Anyone resting on the laurels of current technology is likely to fall behind before too long.
- How do you support the mortgage solution process end-to-end?
One of the primary benefits of partnering with a third party on your mortgage program is their ability to confidently handle the entirety of the mortgage solutions process, no matter what comes up. From escrow payments to ARMs and investor reporting to regulatory compliance, your mortgage partner should be able to provide front-to-back support that fills the gaps in your in-house capabilities. The best potential partners will have decades of professional experience in all areas of mortgage servicing and will be able to augment the services your credit union offers every step of the way.
- Do you require a minimum investment or have a variable cost structure?
Especially in an uncertain economy like we’re facing in 2023, partnering with a mortgage lender that requires a minimum investment is risky. So is hiring full-time staff in the face of such volatility. Look for a partner that offers a variable cost structure that states your credit union only pays when a loan closes.
- Are you credit union owned?
When vetting potential mortgage partners, look for a CUSO (credit union service organization) like TruHome. CUSOs are uniquely positioned to understand and value what you care about most — your members — so together, you can deliver the mortgage experience they deserve.
Knowing exactly where you have room to grow is an essential part of preparing to make critical decisions about the future of your business. It’s never the wrong time to build industry connections, gain new understandings of the market and position your credit union to make smart, strategic decisions. When a mortgage partnership, or any other new direction, is on the table, it’s best to approach all your conversations with your credit union’s best interests in mind. These seven questions will help keep you and your potential partners on track.
Want to get some additional insider insights from a leading CUSO? Contact the TruHome team today! Let us help you bring your members home.