BOSTON -- Just trying to survive and hoping for the best aren't strategies for getting a bigger share of the mortgage market, instead credit unions should develop detailed strategies.

That's the advice of Tracy Ashfield, who specializes in helping credit unions develop mortgage programs.

Ashfield, who spoke at NASCUS' State System Summit, urged credit unions to: Have proactive refinancing programs, especially for ARMs; Focus on helping members get their first homes; and focus on product quality, delivery systems and relationship building.

She praised a lending program by Community First Credit Union in Appleton, Wisconsin, which provides no-interest $8,000 loans to first-time buyers. Members use the money for a down payment and repay it when they receive the $8,000 tax credit from the IRS.

She also urged attendees to manage interest rate risk but also focus on credit risk.
When there are signs that a member could have trouble making mortgage payments, credit union employees should do an early intervention, Ashfield said. But she cautioned that sometimes foreclosure is the best available option for a member, as painful as that can be.

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