TUKWILA, Wash. – If it were up to Prime Alliance's JoeBrancucci, no company would be allowed to be nominated for NACUSO's`Professional of the Year' award unless they could prove they werewilling to take risks and demonstrate they were doing something outof the ordinary. The 52-year old Brancucci, president/CEO of themortgage lending CUSO, prides himself on being a “calculated risktaker. If I don't have a challenge, I get bored,” he says. “Youhave to be in the mortgage lending business,” he continues.“Mortgage lending by definition and because of the way it's builtaround the 1003 form, follows a formula that dictates a mortgagelending process that's not necessarily in borrowers' bestinterests. I like to stir the pot and challenge people'sassumptions about mortgage lending, and that's what I've been ableto do at Prime Alliance. Create a debate and dialogue about creditunions in mortgage lending and how they shouldn't simply befollowers.” It's that willingness to challenge the status quo waycredit unions provide mortgages to their members that got Brancuccinominated by Vandenburg FCU President/CEO and Prime Alliance BoardMember Diana Dykstra, for NACUSO's 2003 `Professional of the Year'award, and be selected as the winner. In her nomination form,Dykstra wrote, “Joe Brancucci recognized, during the refinance boomof 1998, that the mortgage process was completely broken. Followingthe rules meant members waited long periods of time to apply, letalone get approved and closed. He recognized too, that many of thequestions lenders were required to ask and documents needed toapprove the loan served little or no purposes. Not one to acceptthe answer, `those are the rules, Brancucci went to Fannie Mae witha radically different approach, one that did away with thetraditional, data-hungry mortgage application. Fannie Mae,intrigued with the idea and in acknowledgement that things neededto change, supported the new approach for credit union mortgagelenders that use Prime Alliance.” But Brancucci, who says he's nota fan of “individual awards”, says Prime Alliance's success “is ateam effort. I'm just the stimulus. I like to think about and trynew things.” He accepted his award during NACUSO's 2003 FallLeadership Conference in Baltimore, on behalf of Prime Alliance.The CUSO was formed in January 2001 as a wholly-owned CUSO ofBoeing Employees' CU, Tukwila, Wash., in partnership withMinneapolis, Minn.-based information technology company DEXMA andFannie Mae's Internet-based Desktop Underwriter. The credit unionstill owns a majority interest in the CUSO, and 11 other CUs ownminority interests. In August, Prime Alliance announced its firstprivate placement offering with its credit union and CUSO membersto offer them the opportunity to become part-owners of the CUSO and“to broaden the alliance.” Brancucci said the first installment onthat will “hopefully” be completed by the end of the year. Earlierthis year, Fannie Mae announced that it was extending its five-yearstrategic relationship with Prime Alliance until 2011. It wasscheduled to expire in 2006. Prime Alliance serves 64 creditunions, 31 of which are the top 100 credit union mortgage lenders.It also serves CUSOs that represent about 600 CUs throughout theU.S. Brancucci came to BECU in 1995 as its chief lending officerwell armed with mortgage lending experience after a three-yearstint at Keys FCU in Key West. Fla. The Bronx, N.Y. native likes tothink of himself as being “a recovering banker” since he startedout on the banking side of the mortgage business in Washington,D.C. after he graduated with a degree in economics. From his 30years of experience in mortgage lending, Brancucci makes thisobservation: the mortgage industry is “very traditional. Lending isgeared toward defensiveness and protecting the lender fromborrowers who are going to default. But there's some segment of theborrowing universe that the lender has to be able to identify andtouch that should be able to get mortgages easily because of theircredit worthiness.” That's why, he explained, he founded PrimeAlliance, “so we could create a process that's superior to ourcompetitors, make it easy for members to get mortgages, and wouldlet credit unions capture a greater share of the mortgage market.”Brancucci realizes that not all credit unions subscribe to hiswillingness to take calculated risks. “Any time you take a risk,you have to know what you're trying to accomplish and be willing tofail,” he says. “Risk parameters change and you have to know howfar you're willing to fail. Instead of credit unions being members'lenders of last resort, they need to be their lenders of firstchoice. But in order to reach that point, they have to be willingto change. That's the biggest risk, but unless credit unions arewilling to change their perspective on mortgage lending, they won'tbe able to change the mortgage lending process.” Just as Brancucciadvocates a willingness to take risks as being crucial to mortgagelending success, he also stresses the importance of housingGovernment-Sponsored Enterprises Fannie Mae and Freddie Mac havingthe continued flexibility to design and create new programs.Commenting on proposals currently being discussed on Capitol Hillto move the regulation of the GSEs under a new regulatory agencyunder the Treasury Department, Brancucci adamantly opposes the ideabecause, he said, “it would stifle the GSE's creativity and wouldbe detrimental to housing. “You can't have a government agencyinvolved in the regulation of the GSEs. If that happens, the GSEswon't be able to take any risks,” he says. Brancucci is also chairof the Fannie Mae/Credit Union Advisory Group. –[email protected]