Why You Must be in the Mortgage Business (And How)
in Blog

There are plenty of metrics available to define and measure what it means to be the Primary Financial Institution (PFI) for a consumer. For example, you can look at a number of solutions that are proxies for wallet share, like loans, checking, savings, CDs, credit cards, etc., or even volume of dollars transacted for any one of those relationships.

But nothing defines PFI like a mortgage relationship.

It is imprinted on our psyche – go back to Maslow’s Hierarchy of Needs. The most basic needs are physiological – food, water, warmth, rest, which are then followed by security and safety. All of those are arguably related to having someplace to live.

Of course, there is always the option of renting – but homeownership is the proverbial American dream.

If you’re not already offering mortgages, then the strategic question is whether you should be offering members the opportunity for a mortgage relationship with your credit union. I’m willing to bet for those of you that aren’t already offering mortgages, the question is more basic, i.e., how can you offer them, given limited resources and limited deal flow?

It is easy to see how building a mortgage capability can seem daunting, especially to a smaller credit union without high volumes of potential borrowers.  But developing a mortgage offering doesn’t always mean that you need to hire staff to handle these mortgages, to ensure compliance and meet complex regulatory and licensing requirements.

Since mortgages are a well-established business process, they readily lend themselves to outsourcing. Which means that a credit union can leverage the work of others and create a robust mortgage solution for their members, with a fraction of the effort, cost and risk to build one from scratch.

Which also means that there are viable options out there for smaller credit unions with low volume of potential mortgage activity.

We’re hosting a one-day workshop on November 7th focused specifically on this question – how a credit union can get into the mortgage business quickly and efficiently, by outsourcing and relying on third-party providers. We’ll cover topics like –

  • Getting started as an Mortgage Loan MLO (NMLS# Requirements)
  • Build versus partner versus outsource
  • What to look for in a contract
  • Attorney Review considerations and guidelines
  • Marketing and education
  • Participation loans
  • Credit union panel discussion: successful strategies

Whether you are new to first mortgages, have just a toe in the water or want to educate staff, this workshop is for you. This one-day deep dive will feature Lucy Forte from NJCUL Business Partner Symbionce, attorney Peter Liska, and Jeffrey Miller from LoanStreet. And thanks to our sponsors Symbionce and MGIC Mortgage Insurance, the registration fee is just $75. 

DETAILS: November 7th from 8:30 AM - 4 PM, at the East Windsor Holiday Inn. For more information and to register, click here