Mortgage lending can be the key to your credit union'sgrowth in the future. Opportunities abound for credit unions,individually and cooperatively. By securing a member with amortgage loan, you have many chances to offer them other productsand services, as well as helping them achieve the American dream ofhome ownership.

I have no doubt this is not new information for you – you'veheard it around. But let's talk more specifically about this NewYear.

To succeed in the mortgage lending business in 2016, I believecredit unions must take two basic actions. First, they must developstrategies to deal with purchase money loans. And second, they mustfind ways to work collaboratively. (While this message is aimedprimarily at credit unions with mortgage programs, there is no goodreason to not consider starting your own program – aloneor with partners – if you want to grow your business.)

As refinancing fades, purchase money loans should befront-of-mind for 2016. That means, to a much greater extent thanin recent years, dealing with first-time homebuyers.

We all know mortgage lending rules have been tightened, but asyou build your strategy you can still offer a variety of productsthat will appeal to your members – and attract their business. Youradvantage as a credit union is knowing what your members want andneed. The big banks don't. That gives you an advantage. Toot yourhorn; get the word out. Then deliver for your members.

With credit unions near topping 10% market share for newmortgage loans, we also know people trust us to do the right thing– offer affordable loan products based on each potential customer'sindividual financial situation. Keeping that trust continues toplay an increasingly important role in lending.

Besides the purchase money strategy, I firmly believe creditunions must do a better job of working collaboratively. Forinstance, I have had the opportunity to talk with dozens ofRealtors while representing America's credit unions at the NationalAssociation of Realtors conference over the past few years. Thequestion that kept popping up was: How are credit unions differentthan other financial institutions?

Their perceptions of credit unions are familiar butdisconcerting: Only certain people can join. Credit unions are notwell-versed in complex transactions such as housing finance,securities and insurance. Their availability for service is limitedto nine-to-five Monday to Friday.

Many advantages exist for Realtors to work with credit unions,but those relationships will never develop if credit unions do notfirst reach out to Realtors in the local community to dispel theseperceived inadequacies. Consider establishing relationships withlocal Realtors, assuring them that working together is in the bestinterests of both:

• Tell the Realtor of your passion to serve people who live andwork in your community. It's how they work, too. Then-NAR PresidentSteve Brown, speaking at a recent ACUMA Annual Conference, notedthat Realtors and credit unions strengthen the communities theyshare. To me, that is among the strongest arguments you can make inyour conversation.
• Communicate your policies for working with Realtors. Tell themwhich methods you employ for communication. Share your loan processand, hopefully, other Realtors you have worked with. If you arewilling to refer some of your members to the Realtors, mention it.All of these actions build trust.
• Work hard to collect testimonials from homebuyers and otherRealtors. Display them on your website and make them available toRealtor prospects.

Like credit union lenders, Realtors want to make the dream ofhomeownership come true for their clients. Of course the Realtorbenefits; so does the credit union as the lender. But Realtors andcredit unions approach it locally – where they know the people, theeconomy and therefore, the people's needs.

There are many other examples or working collaboratively. Itmight be partnering with another credit union or joining a mortgageCUSO, for example. At ACUMA, we explore these ideas in workshopsand conferences. Feel free to contact me to learn more.

Bob Dorsa is president of the American Credit Union MortgageAssociation. He can be reached at [email protected].