NATIONAL HARBOR, Md. — Credit unions should focus on a few mortgage products, do them well and become go-to experts on the housing market in their local media.
That's the advice that Prime Alliance Solutions CEO Joe Brancucci gave at his education session at NAFCU's 42nd Annual Conference and Exhibition.
"You don't need a lot of products," he said. "Remember, there are some things people don't want. Nobody wants MSU-make stuff up-loans."
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He said mortgages are a good long-term product because demand will be strong and people who want mortgages are apt to trust credit unions because they have been reliable providers of financial services.
Credit unions should develop relationships with the local media so they become the "go to" source on housing issues. This will result in free publicity, which often translates into new business, Brancucci noted.
He offered six suggestions for increasing the market share for mortgages:
o Market, advertise and promote.
o Use staff members who were on consumer loans that are less popular these days-such as auto loans-to increase your mortgage marketing.
o When determining pricing, manipulate the variables you can control and emphasize to members that they are getting a simpler borrowing experience with shorter closing times than your competitors.
o Have a simple product mix. That reduces your costs and causes less confusion for your members.
o Take advantages of the greater opportunities available through FHA lending.
o Consider the efficiency and cost advantages of transforming mortgage operations from traditional paper-based to fully electronic.
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