I heard an expression the other day: “Is the juice worth the squeeze?” And it got me thinking… if it’s orange juice, definitely. I love citrus products because they’re a lot like our Onjo fruit on my home planet. Tomatoes, on the other tentacle… the mess is definitely not worth the squeeze!
I know, I can hear my readers already saying that the expression has nothing to do with juice. While I could write an entire post on Onjo, I would rather talk about credit unions turning on the juice of their mortgage products.
Many credit unions that already offer mortgages to their members, especially the partners I’ve gotten to know while at myCUmortgage, can attest that the juice delivers much to their business operations. In fact, mortgages are VERY big business and well worth the squeeze. If your credit union has yet to accelerate its mortgage program or doesn’t currently offer mortgages but has thought about doing so, consider the following…
- This past year, the mortgage industry saw $2.17 trillion (that’s with a T) in loan originations, according to the Mortgage Bankers Association. THAT is the very definition of big business and big opportunity. Your credit union and your members deserve a tall glass of that juice!
- According to CU Times, credit unions own 9% of the total mortgage industry market share. What that means to credit unions is this: There is a ton of opportunity to gain some of your own share of the mortgage business.
- Last year, about 3 million credit union members closed on a purchase loan or refinanced their mortgage, according to Stratmor Insights. However, only one out of every six credit union members actually went through their credit unions to obtain the mortgage. Again, opportunities for you and your members await.
- Did you know that for every member who holds a mortgage through your credit union, there is a total of 7 additional pieces of business that they bring to the credit union? According to our parent, Wright-Patt Credit Union, if a member does not have a mortgage with their credit union, they only bring 4 pieces of business to the table.
- While many credit unions partake in the auto loan business, did you know that it takes 6 car loans to equal the fee income of just 1 mortgage loan? Not only that, but it takes a credit union about 5 years to get a return on their auto loan investments versus just 1-2 MONTHS for a mortgage.
With these stats and facts, why isn’t every credit union offering mortgage loans to their members? Or, for those that do offer home loans, why aren’t they capitalizing on this big business opportunity in front of them? The reasons often include:
- Members simply don’t realize that their credit unions offer mortgage loans. There is a lack in marketing and communication to members and potential borrowers, making it very difficult to turn on the mortgage juice.
- Some credit unions simply don’t have a competitive mix of products. Government loans, which I talked about in my June 25 post, are a great example. It may seem like there’s a lot of red tape associated with FHA, VA and USDA loans, but as you can read in my previous post, offering these loans is a must!
- Sometimes, the credit union’s internal staff lacks the time, experience or comfort levels to successfully offer mortgages.
If you are intrigued by these numbers and want to gain some big mortgage business, consider partnering with a mortgage industry expert like myCUmortgage. A partner that offers comprehensive mortgage loan and servicing solutions can certainly improve or jump-start your credit union’s mortgage business, all in an effort to get more of your members into homes.
Writing this post has made me thirsty, thirsty for some Onjo juice and thirsty for getting more credit union members into homes! I’m betting you feel the same, so don’t wait another moment—turn on the juice and start quenching that mortgage thirst.