Dun dun, dun dun, dun dun, dun dun, dun dun…
One of the most famous two-note motifs ever put together, thanks to the great composer, John Williams. The Jaws theme has become well known around the Earth for its forewarning of something big and ominous coming forth. The puzzling thing to me is, when the boaters and swimmers in Jaws and its numerous sequels hear that sound, shouldn’t they be trying to exit the water ASAP? Yet, they don’t and we all know how it ends.
This week, I’m using the “dun dun, dun dun” to signal something big but not so ominous is coming: Shark Week! For those of you who may live on an asteroid and are not familiar with this annual television spectacle, Shark Week features a diverse lineup of shark-themed documentaries, expert commentary and scientific explorations aimed at educating viewers about shark behavior, ocean ecosystems and conservation efforts.
This year marks the 38th anniversary of the programming, so they must be doing something right! For me, I’m reminded of the “seas” on my home planet of Amicitia and the gentle melding of land and water. This is not the first time I’ve blogged about Shark Week – in case you missed it, check out Be a Shark and learn more about how a SWOT analysis can help you be a shark in credit union mortgage lending.
Of course, any true fan of Shark Week (or sharks in general, for that matter) knows that Bruce, the star and namesake of the movie Jaws, is not particularly keen on humans being a part of his diet, so the “dun dun, dun dun” intro may be a bit misleading. But I love that music as much as I love Shark Week, so my resistance to doing it was futile.
One of the takeaways from every Shark Week is that there are many different types of sharks that reside and dwell in very different parts of the Earth’s waters. For example, Bruce, who is a great white shark, takes to the open, deep waters of the ocean while bull and tiger sharks prefer coastal waters and estuaries. There are those that hang around coral reefs, like nurse and blacktip sharks, as well as those that thrive in freezing temperatures and high pressures, like Greenland and basking sharks. This variety of sharks and their different wants and needs is vast and not dissimilar to our credit union members who are seeking mortgages.
Every member in every region of the country has unique wants and needs when it comes to selecting their home. As we’ve discussed previously, part of your job as their trusted credit union financial resource is to help them sort through those wants and needs and identify which ones to focus on the most. Then, once the criterion for homeownership is established, you match the loan products that can deliver upon the member’s wants and needs.
This is the very reason why we stress the importance of a solid mix of loan products offered by your credit union. Having a broad selection of mortgage options helps you better deliver upon your goal of getting more of your members into homes. Additional benefits of a diversified mortgage portfolio include greater outreach into the communities your credit union serves, mitigating interest rate fluctuations and compliance with regulatory requirements.
What does a diversified residential mortgage portfolio look like for a credit union? While each one would and should be unique to that credit union and its members’ needs, here are some products and types of loans you’ll want to consider (note that you will see some overlap):
Conventional Loans: The most common type of mortgage loan, the length can range from 10 to 40 years, though the most popular are 15- and 30-year mortgages. A conventional loan gives your member additional flexibility with the types of properties they can lend against with many offering various down payment options.
Government Loans – FHA, VA & USDA: These loans are backed by different government agencies and generally provide members with more flexible credit score requirements and smaller down payments. With competitive interest rates, these loans are popular with first-time homebuyers and members with low to moderate income.
Adjustable-Rate Mortgages (ARMs): An ARM can be ideal for members planning to sell or refinance their home within the fixed-rate window, benefiting from lower initial monthly payments. Be sure to educate members thoroughly on ARMs, as you want to make sure they understand that monthly payments could rise unpredictably once they are past the fixed-rate period.
Home Equity Loans: By borrowing against the portion of their home that they already own, members can use these loans for home renovations, debt consolidation or major life expenses, for example. Members can benefit from lower interest rates, predictable payments and a lump sum disbursement, but make sure they are aware that their home is still the collateral for their loan.
HomeReady® Loans: Backed by Fannie Mae, a HomeReady loan can help reduce barriers to homeownership for both first-time and repeat buyers. It accomplishes this by offering down payments as low as 3%, providing a $2,500 credit to qualifying members, reducing private mortgage insurance requirements and offering flexible funding sources for down payments and closing costs.
First-time Homebuyer Loans: Several of the above products provide benefits to first-time homebuyers. Be sure to educate your members on these no-to-low down payment programs and get them pre-qualified. Establish yourself as their trusted financial partner and help them navigate the mortgage process from application to closing and beyond.
Duty to Serve: Though not an actual loan product, Duty to Serve refers to financing backed by Fannie Mae or Freddie Mac that is designed to help very low-, low- and moderate-income members in underserved markets. This is where you truly become their partner by helping them explore available mortgage options, finding the right mortgage and estimating monthly payments and closing costs.
This is not a complete list, of course, and your credit union is certain to have loan products and promotions specific to your membership. What type(s) of loans and loan products does your credit union offer members? (Note: If running something custom to your credit union, always make sure you’re meeting regulatory requirements for mortgage lending.)
As I conclude this post, it is now time to start preparing for Shark Week 2026! Do you plan to watch the shark programming next week? What are your favorite segments? Better yet, what is your favorite type of shark, and why? Mine would have to be the rare and elusive goblin shark. Often described as a living fossil, this deep-sea shark would give Bruce a fright!
Happy Shark Week!
HomeReady® is a registered trademark of Fannie Mae.