BOSTON -- Just trying to survive and hoping for the best aren't strategies for getting a bigger share of the mortgage market, instead credit unions should develop detailed strategies.
That's the advice of Tracy Ashfield, who specializes in helping credit unions develop mortgage programs.
Ashfield, who spoke at NASCUS' State System Summit, urged credit unions to: Have proactive refinancing programs, especially for ARMs; Focus on helping members get their first homes; and focus on product quality, delivery systems and relationship building.
She praised a lending program by Community First Credit Union in Appleton, Wisconsin, which provides no-interest $8,000 loans to first-time buyers. Members use the money for a down payment and repay it when they receive the $8,000 tax credit from the IRS.
She also urged attendees to manage interest rate risk but also focus on credit risk.
When there are signs that a member could have trouble making mortgage payments, credit union employees should do an early intervention, Ashfield said. But she cautioned that sometimes foreclosure is the best available option for a member, as painful as that can be.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
