It's now easier and more affordable than ever for credit unions to incorporate member-direct loan-application systems into their mortgage businesses. And innovative credit unions are not only aware of the pervasive nature of the Internet in the realm of consumer commerce, they are broadly implementing online mortgage-origination technology. In many ways, such technology has become a prerequisite for business success.

Best-of-breed providers of online mortgage-origination systems have developed "intelligent" software applications–powerful, low-cost tools that enable credit unions to effectively serve prospective borrowers without the borrowers ever having to leave

their homes.

The best systems enable members to access the same services online that can be obtained in the branch from an expert loan officer, including an overview of eligible loan products, a range of pricing options, city-level closing costs, personalized interviews, accurate disclosures, immediate approvals, secure rate locks, and ongoing status updates throughout the mortgage process.

Serendipitously, it turns out that the intelligent nature of these Web-based systems–when combined with the cost advantages of hosted, "software-as-a-service" technology–opens up an entirely new set of business opportunities that credit unions are

actively pursuing.

Leveraging Branch Personnel

Credit unions have been particularly successful at deploying online lending technology in branch offices. Historically, because of the inherent complexity of mortgage transactions, credit-union loan managers have prohibited branch personnel from taking mortgage applications. Or, managers may have permitted non-lending staff to take applications–despite compliance risks and uncertain results–simply because no better option existed.

Neither of these solutions is optimal.

Today, through the enterprise-wide deployment of a robust online lending platform, branch personnel can almost instantly serve as mortgage "experts" who can provide a level of service closer to that of a professional loan officer.

How is this possible? When staff members have a powerful, intelligent online system to guide them through the mortgage-application process, the software ensures that all pricing and compliance needs are properly handled. The software also helps ensure that data quality is high, the loan file is correctly prepared for export to a loan origination software (LOS) system, and–most importantly–all members get immediate, high-quality service.

Like most branch personnel, call-center representatives are typically product generalists who can handle a broad range of issues and transactions. However, they generally lack the specialized training, product knowledge, and technology solutions needed to take mortgage applications.

In the past, this meant that call centers would typically respond to mortgage inquiries by referring members to loan officers–a "hand-off" process that can create opportunities for members to find a more responsive lender.

Giving call-center reps access to a sophisticated online lending system eliminates this risk.

The right technology solution enables call-center reps to serve as ad hoc mortgage experts: They can furnish detailed product pricing quotes, provide accurate estimates of costs and fees, efficiently complete mortgage applications, and even provide immediate loan approvals. This type of technology enables credit unions to effectively leverage their investment in lower-cost call-center personnel without significant cost and training impacts.

Real-world Success

In a recent study by First Wellesley Consulting Group of Wellesley Hills, Mass., one credit union reported that by using its online, point-of-sale mortgage-application system to support branch and call-center personnel, the number of associates that could correctly take mortgage applications increased by a factor of five: from just 7 to 35 employees.

Not only did this lead to a surge in mortgage volume, but the credit union virtually eliminated paper loan applications–which has helped the organization work toward its objective of a paperless environment.

But that's not all. Not only do the organization's branch personnel now have a robust tool to help them originate mortgages, they have become more supportive of mortgage lending–which has led to the repositioning of the mortgage loan as a core product.

This sort of success is being replicated in scores of credit unions throughout the country, and is sowing the seeds of a bright future for the credit-union mortgage business.

Web-based systems that support a personalized, interactive, and intuitive mortgage-application experience are creating significant new business opportunities every day. Through the implementation of such systems, credit unions are taking advantage of a new type of lending process–one that may be best described as the "member-assisted" transaction. For the first time in mortgage-lending history, non-expert associates in branches and call centers can deliver fast, accurate, and professional mortgage services to credit-union members.

Like the opportunities for space-based commerce that began with Sputnik, today's online mortgage-lending systems are providing credit unions with brand-new opportunities to reinvent their lending businesses. For credit unions with the vision and leadership to relinquish traditional approaches, a new and prosperous business frontier waits to be explored.