As I wrapped up Part 1 of this post, I mentioned that “opportunity abounds.” All I could picture were your Earth astronauts bouncing around the moon’s surface, leaping and grabbing at opportunities during their low-gravity exploration. The low- or anti-gravity thing truly is an opportunity to experience. Maybe I can convince the planners at myCUmortgage to have an anti-gravity chamber at the next Partner Conference, although from the sounds of it, we’ll have to settle for karaoke.
While opportunities may not be literally floating all around us, they are there. The opportunities I speak of gravitate around the world of homeownership. These are opportunities for your members to fulfill their dreams of homeownership as well as opportunities for you, their trusted credit union, to provide the tools, insights and support to make that happen.
In Part 1, I outlined some of the myths around homeownership that you need to dispel for your members. I also looked at one of the tools that could be of particular interest and value in today’s purchase market: Adjustable Rate Mortgages, or ARMs. [This is the point where the informercial announcer pipes up and says, “But wait! There’s more!]
And indeed, there is more, much more than I could possibly include here. Let’s look at some additional tactics, actions and products you’ll want to consider incorporating into your plan to help more members with homeownership in today’s purchase market:
Variety is the Spice of Life: It’s also a great thing to have when you’re talking about mortgage loan products. In a purchase market, it’s more important than ever to have a comprehensive mix of products to meet the essentials of a diverse membership with very specific individual needs. Conventional mortgage loans are at the center of the product mix solar system, and as detailed in Part 1, ARMs are solid options for purchase markets. Another great option to diversify your product mix in a purchase market is government lending:
- FHA Loans offer low down payments as little as 3.5% of the purchase price. One major benefit of this program is that members with lower credit scores may qualify. FHA also has shorter waiting periods for significant derogatory events, such as bankruptcy, foreclosure, etc.
- VA Loans offer eligible veterans or active-duty service members home financing with no money down and no monthly mortgage insurance premiums. The veteran is also able to increase housing size over time with bonus entitlement.
- USDA Loans offer financing for eligible members in certain rural areas with no down payment. The borrower must be within the low to moderate income guidelines to qualify, and the home must be in an eligible area. Many properties that are not assumed to be rural may be eligible.
Class is Back in Session: Over the last couple of years, an important element in credit union mortgage lending—member education—has taken a backseat to the extreme hustle and bustle that the refi Big Bang delivered. Now that we’ve successfully maneuvered through that asteroid belt, it’s time to start demonstrating to members once again why their trusted credit union is the best space lane to homeownership. You can start by revitalizing your member education offerings.
Establish your credit union as an industry thought leader using numerous channels and tools to spread your knowledge and attract more mortgage-minded members. Since your membership spans several generations, be sure to use a variety of channels to communicate, including social media, your website, direct mail, printed collateral, email drip campaigns and homebuying webinars and seminars.
The time in the classroom shouldn’t stop there! Equally important is keeping you and your credit union mortgage lending team up-to-speed on industry trends and forecasts and professional development in general. Now that we have a pause from the non-stop action of the past two years, there are multitudes of mortgage industry articles, podcasts, blogs, seminars, webinars and conferences available that provide good tips for succeeding in the evolving market and strategies you may not have used in a while. Additionally, consider making use of this breathing room by pursuing some of those “when I have time” plans, such as building new Realtor relationships or strengthening the ones you have.
Member Friendly Technology: Let’s keep this one short and to the point because it’s an option that’s readily available and should be in consideration (if not already incorporated) by your credit union. Technology weighs heavily in today’s credit union mortgage lending industry, so we need to make sure those technologies are user/member friendly and easily accessible through a multitude of channels.
Of course, the credit union way of doing business is paramount, and today’s technology is following suit by catering to your members’ home lending needs. The combination of member-friendly technology and credit union personalized service creates a great opportunity for your members looking for homes.
Opportunity is a shining star in what may appear to many as a dark and bleak real estate and mortgage space. The only star in the galaxy that is brighter than this opportunity is The Credit Union. Make sure to seize the special opportunity presented by today’s purchase market and illuminate the world of homeownership for your members.