Purchase-Money Lending May Be Ready to Blast Off
Credit unions may have their best opportunity ever to boost the portion of mortgage loans that actually go to purchase homes as opposed to loans that refinance previous notes.
Many credit unions seek to build up purchase-money loans as a hedge against the day when the numbers of refinance loans decline and because they often include significantly more cross-selling opportunities.
“I think there were a number of members who had been sitting on the sidelines and hadn’t been ready to come in, but that a combination of a shrinking number of houses in their areas and rising rents had helped them make the decision,” he said. Signing up with CU Realty Services had been part of the effort to meet those needs, particularly for members who were not in Burbank, Anaheim or central Florida, he explained.
CU Realty Services seeks to help participating credit unions become the first point of contact for their members, whether they are buying or selling real estate. Making the credit union the source of both information about potential home purchases or sales and Realtors ready to help credit union members at a reduced cost should help the credit union capture more of the purchase-money lending, the credit union hopes.