By Buddy Kittle
The last few years has brought a perfect storm of events to credit unions: The mortgage debacle and increasingly poor or complete lack of personal customer service on the part of mega banks meant customers came knocking of credit union doors in droves, looking for more than just a place to deposit their checks. Has your credit union capitalized on this opportunity?
If not, it may not be too late. Many financial institutions are abandoning mortgage lending because they don’t understand how to mitigate the inherent risk. Mortgage lending has seen more changes in the last five years then during the entire mortgage-lending era began, and opportunity arises from adversity. This means that now is the perfect time for credit unions to reap the benefits of this crisis by filling the void left by big banks. All they need to do is make sure they have done their research and set up accurate loan flows with compliance checks written into the loan process.
Most credit unions think they don’t have enough or the right personnel to properly manage and staff a mortgage loan department. But they should examine how many of these functions are already outsourced. Using outsource service providers can reduce CU risk, increase efficiencies and raise profitability.