Purchase Money Mortgages Touted
A CUSO that helps credit unions increase the number of purchase money mortgages has urged credit unions to consider housing finance less as the marketing of loan products and more as creating a leading sales channel.
“Credit unions should start looking at the home buying decision cycle as a lead channel and design a program that will enable them to capture their members’ business when they are ready to begin their search–not after,” wrote CU Realty Services in a white paper, “Making the Shift: Helping Credit Unions Establish Real Estate Services as a Core Product Offering.” CU Realty Services is a national CUSO headquartered in Scottsdale, Ariz., that helps credit unions tailor their housing finance programs to attract more purchase money borrowers.
To bolster its case, the CUSO pointed to surveys that showed that roughly half of home buyers now start their real estate search on the Internet and that 88% have used the Internet at some point during their home search. This has meant that Realtors are generally brought in later in the process, often to confirm or ask questions about a property that the interested home buyer has already found online.
The CUSO also pointed to research that shows credit unions occupy a significantly more trusted position with potential home buyers as a source of housing finance and, potentially, as a source of real estate help generally.