There is no doubt that major shifts have taken place in the mortgage market over the past couple of years. An increase in competition and the transformation to digital mortgage lending solutions have had a huge effect on how credit unions and other institutions that depend on mortgage lending do business.
In the upcoming months and years, mortgage lending will play a major role in the health and wealth of credit unions. Credit unions who want to attract new members and borrowers must be flexible and stay current with trends that are happening in the market. This blog will explain the National Credit Union Association’s best practices for real estate proposals, as well as some tips about mortgage lending solutions for your credit union.
The National Credit Union Association’s (NCUA) real estate appraisal guidelines
The real estate appraisal process is a huge part of the mortgage lending process and is vital for both credit unions (CUs) and borrowers. Your CU’s Board of Directors must make sure the credit union has an efficient and fair real estate appraisal evaluation program in place to monitor all lending functions. As outlined by the NCUA, credit unions must:
- Have an independent process separated from other parts of the lending process when valuing collateral.
- Have quality controls in place and regularly review the appraiser’s certifications, licenses and the work completed.
- Expand the “Minimum Appraisal Standards” and add their market value opinion as defined by the Agencies regulations.
These are just a few of the things your CU should consider during the real estate appraisal process. For the NCUA’s complete Appraisal and Evaluation Guidelines, click here.
Strategies to win more mortgage borrowers
Mortgage lending has always played a big role in keeping credit unions healthy, and probably no more so than right now. As the market goes through changes, now is a good time for credit unions to experiment with new strategies to attract member growth. Listed below are a few tips to increase mortgage lending at your credit union:
- Offer local experience and expertise. Though fintech companies are making inroads into the mortgage lending space, most potential members and borrowers prefer a real experience with someone from the community. Online lenders cannot offer the same personal touch as you can at your credit union. Going the extra mile for borrowers to help them have their loans approved can really make the difference for members.
- Use your reputation. Credit unions should communicate what they’re doing in their communities, such as any awards, education programs or special loans they are offering. You can show off your reputation by sharing articles and links about the CU on a website and linking to pertinent lending information that could be helpful to members of the community.
- Personal relationships. By becoming an expert on the mortgage lending process, your CU employees can build personal relationships with borrowers and help them throughout the process. Employees can counsel members on how to save money, which loan programs are right for them and how to refinance their mortgage. The more helpful CU employees can be for their members, the more they can distinguish themselves from the crowd as an above average lender.
- Be proactive. To attract new members, credit unions should consider hosting informative virtual conferences, local seminars, community outreach programs, or Youtube and Facebook live events on a topic like first-time homebuying.
It’s also critical that credit unions make use of the best technologies to assist with digital mortgage lending. At FLEX, we can sustain all of your mortgage servicing needs under one digital roof and provide a seamless, user-friendly digital mortgage lending experience for your members. To find out more about FLEX credit union core technology and how it can help with your digital mortgage lending needs, download our Mortgage Servicing ebook that illustrates how your credit union can properly service your members' needs throughout the home buying process within core technology.