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…