5 Ways to Increase Your Mortgage Lending Visibility

2019 is proving to be a year of robust mortgage loan production and credit unions have been large contributors to the market. Despite the origination records that are being set, however, a common theme emerging from credit union partners is “How can we capture more of our membership base as mortgage clients?”

As of the end of 2018, according to Callahan & Associates data, credit unions were serving just 4.5% of their membership base. Given the record membership numbers of recent years, this leaves an estimated 112 million members untapped as credit union residential lending borrowers.  With share balances increasing as membership rosters grow, credit unions have some exciting opportunities to differentiate themselves in the market with niche portfolio products and programs to attract key segments of their membership base. Let’s explore some creative strategies for increasing visibility to your mortgage lending programs.

1. Know when your members are preparing for a home purchase. Credit data partners typically offer Mortgage Inquiry Trigger programs that can help credit unions identify members who are preparing for a home purchase. With these insights, you can develop real-time marketing to provide visibility to your mortgage offerings. These programs can also help with member retention as you stave off losing loans from your existing portfolio through a refinance by the competition.

2. Develop share programs that prepare members for homeownership. This is another prime opportunity to nurture your members toward homeownership readiness. Combining homeownership education with special savings programs to build down payment funds not only creates loyalty from your members, but provides simultaneous share growth for your institution.  Consider creating a special homeownership readiness app that adds some gamification to the savings and credit qualification process. Remember also to debunk the lingering myth that a 20% down payment is required to buy a home.

3. Build a relationship with your borrower. As much as the digital age has infiltrated the mortgage lending industry, borrowers, in particular first-time homebuyers, still value a personal relationship with their lender. They want to be able to trust the advice and guidance that is being provided. Get creative and meet your potential borrowers where they are. Have a local craft brewery in the area? Host a regular happy hour as a casual get-together for potential homebuyers. Invite some of your vendor partners – homeowners’ insurance agents, property inspectors, title agents or even your local mortgage insurance rep – to join you for casual conversation with your attendees. Facilitating open dialogue on the homebuying process in a comfortable environment provides a safe atmosphere for members to become acquainted with the process. Keep it simple while building trust. Do Select Employer Groups comprise a portion of your membership base? Partner with your SEGs to become the homeownership resource for their employees. Offer to host an onsite learning series as an employee benefit.

4. Correct misconceptions of credit union participation in the mortgage lending industry. Realtors continue to drive significant influence in the lender selection process with their clients. Providing insights on your offerings to this key referral source in your community is critical to earning their business and avoiding the risk of your existing members being directed to other lenders in the community. Marketing your lending programs is just the beginning. Remove any misconceptions of membership qualification concerns. Highlight any point of sale or loan origination software tools that provide your members 24/7 access to loan applications and/or loan status tracking software that your credit union uses. Realtors want confidence that you have the products, tools and resources to meet their clients’ needs, and more importantly meet their closing deadlines.

5. Finally, identify the Realtors within your own membership base. Market your mortgage products directly to them. Use digital marketing, launch email campaigns or host a lunch-and-learn that offers insights into hot industry topics – anything that provides you the opportunity to bring value and raise visibility to your support of the homebuyers in your community. Don’t forget to invite them to participate in some of your homeownership events to help build the loyalty and share in the referral opportunities. Have a potential Realtor or agent referral source who is not yet a member? Invite them to become one so that they personally can experience your culture and become a personal advocate for the credit union!

Whether your credit union is above or below the industry 4.5% average, plenty of opportunity exists to spread your credit union’s mortgage lending story and grow your real estate lending portfolio. With expanded membership outreach, data resources, continued membership growth through community engagement, and connection across the Realtor community and beyond, you can capture your fair share of this valuable untapped market.

CU Mortgage Lending by the Numbers

• 4.5%: Real estate loan penetration by credit union members at the end of 2018
• 117.6 million members: Credit union membership as of 2018
• 112 million members: Number of potentially untapped residential credit union borrowers
• Conventional mortgages with less than 20% down payment, which are backed by the mortgage insurance industry, have become the most widely used product for first-time homebuyers over the past year, helping more than 684,000 first-time homebuyers in 2018 (about one-third of the market)
• According to ONE Street, over the past several years, the median down payment for a first time homebuyer has been 6%

Melissa Lineberry is Credit Union Segment Manager for Genworth Mortgage Insurance. She can be reached at melissa.lineberry@genworth.com.