July 2008 - Posts

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

  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…   Posted Jul 21 2008, 09:30 AM by bdorsa with no comments Filed under: ACUMA is Making Things Happen in CU Mortgage Lending.

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

  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...     Posted Jul 21 2008, 09:24 AM by bdorsa with no comments Filed under: Networking is Key to ACUMA Membership

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

  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!    Posted Jul 07 2008, 07:14 AM by bdorsa with 5 comment(s) Filed under: Networking is Key to ACUMA Membership