ACUMA Community

IMPORTANT: YOUR FEEDBACK TO THE PROPOSED CU HARP PROGRAM

bdorsa — Tue, 16 Dec 2008 20:43:00 GMT

To: All ACUMA Participants

FR: Gary Oakland and Joe Brancucci

RE: CU HARP

We hope all of you have had the opportunity to review the CU HARP, NCUA’s and the CLF’s answer to the Housing RoundTable’s Member Mortgage Relief Initiative. This is a quick poll to determine your level of interest in HARP (HARP and SIP are separate programs. For the purpose of this brief poll, please confine your thoughts to the HARP.), with the idea we will provide feedback to the NCUA and The CLF. Please take a few minutes to answer these questions, replying to jbrancucci@becu.org and goakland@becu.org.

How likely is your credit union to to participate in HARP and make use of HARP funds?
If your credit union is not likely to participate in HARP, why not?
What do you see as advantages of HARP?
What do you see as disadvantages of HARP?
Have you already applied for HARP funds? Will you do so by this Friday’s deadline, December 19?

Thanks for taking time to answer this poll, it will help us provide feedback to the NCUA.

Happy Holidays,

Gary and Joe

What are your views on the CU HARP and the CNBC Interview with NCUA Chair Michael Fryzel?

bdorsa — Wed, 10 Dec 2008 17:37:00 GMT

I have received several emails inquiring about the details of the CU HARP proposal announced by the NCUA. What do you think? What does your CU need/want? Based on comments posted here perhaps we can stimulate a plan of action consistent with the original proposal created by the CU Housing Round Table in October. If you have not seen the interview please cut-and-paste the following URL.

http://www/youtube.com/watch?y=1H1F9djW3_E

I for one am feeling a Credit Unions are being treated like Rodney Dangerfield these days.

bdorsa — Mon, 21 Jul 2008 16:30:00 GMT

For a number of reasons, mortgage bankers from many circles aren’t getting much respect these days. In fact, mortgage brokers have joined the ranks of lawyers as one of the most hated professions.

With millions of homeowners falling into foreclosure, and millions of others not sure exactly what to do or whom to trust, many people believe the mortgage industry is at fault. So what’s it going to take for the public to start showing some respect? Many foreclosure victims were evidently duped into bad loans by unethical mortgage brokers, but how many of those originated at credit unions? We know that number would have to be VERY tiny. In fact, newly announced regulations look like the Credit Union loan origination manual of recent years. Manyof you know the story all too well. People were steered toward 'risky' Adjustable Rate Mortgages because most brokers got higher commissions on these loans and buyers with bad credit were a huge target. Brokers told them if they got ARM loans and made their payments on time, they could refinance later and get low "fixed rate" loans. Even people with good credit got lured in; ARMs were a way to save money for a couple of years: "You can always refinance later ...." was repeated over and over again. Never mind all the hidden pitfalls of these loans: negative amortization, prepayment penalties, etc. Unfortunately, when home values started to plummet many homeowners are stuck and cannot refinance. Somehow we MUST let the public know that credit union mortgage loans as good or better than the competition! ACUMA is the only credit union trade association dedicated specifically to helping credit unions be successful and profitable mortgage lenders. We provide universal opportunity to obtain valuable knowledge and information from your peers and leaders in mortgage banking. Membership provides the forum and network to work together for individual and industry success. It is time to shout our unique difference. Credit union’s stick to old-fashioned credit union values, a world where “people are worth more than money.” That may be a slogan but it is very true. But, as even a casual study of U.S. economic history will ascertain, that turn-around is inevitable — and when it comes, credit unions that skillfully managed the crisis will be in an excellent position to prosper in the coming recovery.Maybe then we’ll get some respect. What do you have to add? Why do you think Credit Unions get No Respect…ACUMA networking is the most valuable member benefit of all…Together we can make this a better financial services for all…

“We are Close to 20% Market Share. and Here’s How We Did It”

bdorsa — Mon, 21 Jul 2008 16:24:00 GMT

Tim Sciborski, SVP Community First Credit Union in Appleton, WI writes...

"We have always been a strong mortgage lender but this year has seen an increase in market share. The opportunity exists. All you have to do is go for it!The support of your CEO and the marketing department is key. We have done a couple of promos where we have featured a 5 and a 10 year in house product. These promos were done mainly through radio, some newspaper and direct marketing to the realtor community. In addition our branch personnel supported us in any way they could. Fielding phone calls and making appointments for our originators. With these promos we also require a true “relationship”. For those among us that have been around long enough to remember that a checking account always came with the mortgage loan, well it’s true here. If you want that great rate you need checking with direct deposit. And even though we gave rates out as low as 3.95% and 4.99% the profitability of these members is very high. The average almost 5 services per member. I also received a call from a long time mortgage banker in our market that said; “I can’t beat you so I want to join you.” So you know we are reaching the market and the realtors with our message.

Overall we are at 28% loan growth for the year and real estate has been a large part of this."

What do you think? What can you ofer to others who are searching for strategies?

Please add your comments for all to see...

Looking at ways to keep making high LTV loans and mitigate risk.

bdorsa — Mon, 07 Jul 2008 14:14:00 GMT

Tim Mislansky, Senior Vice President - Wright-Patt Credit Union President - Wright-Patt Financial Group would like to ask the following question...

In order to continue to make high LTV loans his CUSO is looking for new programs that achieve their goal while mitigating risk. "We're giving consideration to doing a pledged asset mortgage where mom & dad pledge a CD on deposit at the CU as collateral to avoid PMI for their borrower" asks TIm....

If you are doing this please comment here and pass your experiences to TIm.

Please post a comment or ask a questions. ACUMA members collectively have answers to all of your questions!

In our last exam the NCUA required that we create a policy and start monitoring non-owner occupied real estate loans according the regulatory requirements (Part 723.6 g) for Member Business Loans.

bdorsa — Mon, 14 Apr 2008 20:58:00 GMT

This subject was submitted by Doris Ortiz, Vice President - Lending CBC FCU in CA. Doris asks...

"In our last exam the NCUA required that we create a policy and start monitoring non-owner occupied real estate loans according the regulatory requirements (Part 723.6 g) for Member Business Loans. While the regulation reads “periodic financial statements, credit reports, …” ,our regulators want us to do this annually. I am concerned that if we require our borrowers to provide us with this information annually it will cause them to take their business to a lender that does not require it – which, I believe would be any lender other than a credit union. I am looking for a credit union that does these periodic reviews to request that they share their policies and procedures with me. By the way, I asked the regulator for a credit union contact and they could not provide me with the name of any credit union already doing this."

On behalf of Doris, thank you in advance for your comment!

Attracting Members for conventional 3/1 & 5/1 ARM's Using Discounted Initial Rates

bdorsa — Fri, 04 Apr 2008 17:59:00 GMT

The following question was submitted by Victor Petroni, SVP Lending, First New England FCU and President, Mortgage Markets CUSO, LLC.

My question has nothing to do with the CU 1st mortgage penetration issue although I think it is a good one!

I am seeking out any credit unions that have been successful in attracting members to take out conventional 3/1 & 5/1 ARM's using discounted initial rates as the primary point of attraction? We have had little success marketing ARM's in the past and I'm hoping that someone out there in ACUMA credit union land has had some success and would be willing to share information concerning their target demographics, marketing message and internal speaking points for loan officers/originators.

Our First Blog - Penetration of Existing Member Mortgage Loans

bdorsa — Sun, 09 Mar 2008 18:40:00 GMT

Good day...

Welcome to the first of our ACUMA Blogs...ACUMA takes another big step in the world of Credit Union mortgage lending networking...

I would like to begin with the topic of CU Mortgage Loan Penetration Percentage. For as long as I can remember CUs measure our mortgage loan productivity based on market share. This percentage has been around 2% for many years and for the first time ever nearing 3%. My question...How relevant is this for our efforts?

I fear we may be placing too much emphasis on this relatively low percentage instead of viewing what really counts. By this I mean what is the mortgage loan penetration percentage for those Credit Unions committed to mortgage lending, those that do more than one or two loans each month? The answer to this question should prove quite interesting.

Based on our goal of 10% penetration by 2010 is it really fair to burden our math calculation by applying this to a total CU industry level? It make more sense to refine our view and measurement to focus on ONLY active mortgage lending CUs and see if they can reach at least a 10% penetration for their members. Actually you may already be there or very close. Please post or report your mortgage penetration percentage so we can have a feel for where active mortgage lending CUs stand. Next we will look at the steps and measures required to increase your market share with your existing members which we have discussed for many years. We will also include some strategies to address new business from Realtors and Builders!

Thanks in advance and I thank you for your time and contribution to our new ACUMA mortgage lending networking tool.

Sincerely,

Bob Dorsa