LAS VEGAS — A panel of credit union experts in home lending presented an overview of the hidden mortgage option that CUs offer to realtors during the National Association of Realtors Conference and Expo here recently. With uncertainty in the real estate markets and the credit crunch running through banks and other home lenders, ACUMA has been trying to open up opportunities for CUs through realtor relationships, said Bob Dorsa, ACUMA president.
The panel was hosted by Dorsa, who introduced Joe Brancucci, VP/chief lending officer, Boeing Employees' Credit Union (BECU), Shannon VanSickler, director of Mortgage Lending for Bellco Credit Union, William (Bill) Tessier, associate VP, real estate/builder liaison for Navy Federal Credit Union and Chris Pauling, president of Prudential Northwest Realty. Each panelist gave a brief description of their CU's history and breadth of home lending products and services. Each CU provided a short video highlighting its service to the community and dedication to helping members become homeowners.
The breakout session was one of 21 others on the NAR agenda that day, also competing with big-name speakers in the main auditorium, so the audience was sparse, admitted Dorsa. "This is really just a jumping off place for us," he said. "We've been exhibiting at the NAR for several years and this year we were asked to do this panel, so interest in credit unions is obviously up, but we still have a ways to go." Dorsa added that the NAR board's approval to start its own credit union to serve members, to be called Realtors FCU would only raise the level of awareness. "Activity at our booth was brisk this year, and we'll be following up on those contacts as well."
The panel discussion was professionally videotaped, he said, and will be edited with additional footage and made available on the ACUMA Web site (www.acuma.org).
Brancucci told those in attendance that BECU provides dependable mortgage services, at great rates and without junk fees and faithfully delivers closing documents five days before the closing date, a feat that sets them apart from other lenders. BECU began to turn around a lackadaisical mortgage department starting in 1999 when it reached out to realtors, asking them what their biggest obstacle was to closing home loans. That led to the document delivery promise that has helped expand the business, he said. BECU also lamented its finding that while 83% of its members had mortgages, only 6% were financed through the CU. "Our members had a disconnect and we had a lot of work to do. We started doing loans in 1995 and frankly weren't very good at it. Not anymore."
Pauling, who represented the realtor point of view on the panel, attested of the dim view of CUs held by most realtors. "In the early days realtors told clients to get a car loan at the credit union but not a home loan, because the process wasn't reliable, but that's all changed now. Credit unions are reliable sources of home loans. That's the experience of my realtors and I think you'll find that's likely in your own markets."
VanSickler said that she gets excited thinking about how Bellco has revamped its own mortgage department to become a first responder to members seeking home loans. "What we do for members every day we can also do for realtors," she said. "Because we have a fiduciary duty to members and represent their best interests it can put realtors at ease. Because you must also represent the client you can see the value we bring with better rates and lower fees. To realtors, it means being able to deliver lower cost loans, and that's a big plus for you."
VanSickler noted that she'd seen the big price swing in jumbo loans, in particular, when the credit crunch first hit in September. "We never raised our jumbo rates and most credit unions didn't either." And given the full range of options, including fixed rate, ARMs, HELPR loans (100% financing) and even low cost mortgage insurance, the CU opportunity to grow mortgage share by working with realtors is a competitive advantage for both, she added.
Navy Federal Credit Union is the world's largest, noted Tessier, and it did some $8 billion in first and second mortgages so far this year. Three-quarters of those are purchase loans and 25% are refinancings. "I came on board specifically to reach out to the realtor community," said Tessier. "And part of our being the biggest is the luxury of being able to design and customize our own products. We can do that because we portfolio many of the loans we make. We don't have to sell them all off to Fannie Mae or Freddie Mac. And we service most of our loans, too."
–cburger@cutimes.com
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.