If You Have a Good Story To Tell, but You Don’t Tell It, Is it Still A Good Story?
Sound familiar? It should. If a tree falls in the forest, and there is nobody there to listen, does it still make a sound? What does any of this happen to do with mortgages and credit unions? Let me tell you.
I was recently on an airplane flying home and was reading one of our industry’s trade publications. The passenger sitting next to me asked me what I did for a living. I always love these opportunities because I typically use them to educate consumers about the differences between credit unions and banks. When I shared with him what I did, and more importantly, what Prime Alliance does and how we help credit unions finance the homes of their members, his response was (and I’m not making this up), “Well, I belong to XYZ FCU (name changed to protect the guilty), and I had no idea that I could get a mortgage through my credit union. I always look to them for my credit card and car, but never thought about my house.”
Well, as the sheriff in the movie Cool Hand Luke so famously said, “What we have here is a failure to communicate.” I wasn’t kidding when I noted that the credit union’s name was changed to protect the guilty, because we are all guilty. Obviously, we have a disconnect when the industry as a whole only represents two percent of all 1st mortgage originations in this country; For the record, the credit union that this member belonged to is well known and well respected within our industry.
So, where does that leave us? Very simply - with a lot of work to do. By most estimates, 25% of Americans belong to a credit union. And while some might think that is an impressive number, I tend to flip the coin over and say that means 75% of Americans don’t belong to a credit union. What an opportunity for us all! Our industry has always struggled to how best define our value proposition for our existing as well as prospective members. Ask any person if they would rather rent or own their home? The answer is obvious. So why don’t we ask the 75% of Americans that don’t belong to a credit union the same question: Would you rather rent or own the financial institution you do business with? The answer should be equally obvious. Credit unions are member-owned, not-for-profit, trustworthy and always have our member’s best interests at heart. Makes sense since every transaction we do is conducted with the owner.
As part of the Credit Union Housing Roundtable™ initiative, Prime Alliance will be working on a marketing initiative to help credit unions create member awareness that anyone interested in purchasing a home should start with their credit unions. If you are interested in learning more about this initiative, we’d love to hear from you.
Back to my question. If you have a good story to tell, but you don’t tell it, is it still a good story? The answer is yes, but only if your members are listening.
A Call to Action:
We are looking for stories that tell about the credit union difference in real estate lending. Do you have a special program that helps members that normally would not get a mortgage into their first home? Do you work in a unique way with government programs to assist first time buyers? If you have a story you would like to share, please contact me at jbrancucci@becu.org
Indian Wells, CA.
The time to register and receive the the early bird discount of $599.00 is coming to an end. So register TODAY!
This year we are focusing on the power of partnerships and how those partnerships will help more of your members realize the dream of home ownership through your credit union. Partnerships that improve lives and that build financial security for generations of families. It is through partnerships and our joint efforts that we all can realize the dream of putting more members in homes. The question is do you Dare to Dream? If so, partner with us for the 2007 Prime Alliance Symposium and learn how powerful partnerships can make dreams come true for you and your members.
To Learn More Click here
-Powerful and Innovative Guest Speakers-
- Dr. Robert Kriegel -
- Mr. Eric Whal -
-Six Different Educational and Informative Breakout Sessions-
-Great Opportunities for Networking & Visiting Old Friends-
- Dinner Cabaret -
- Opening Reception -
-2007 Prime Alliance Golf Outing-
and Much MUCH MORE..
For example, the housing market is projected to climb over the next 15 years. As America’s multicultural markets grow, so do the opportunities surrounding an untapped market of families for home financing.
Use your points of differentiation to impact strategy and tactics – what advantages can you leverage to move the mortgage origination needle from 2% to 10%?
Inherently, credit unions have a number of advantages over other financial institutions. A high sense of service and value to members, a willingness to say yes, high retention of loan servicing, and the ability to engage and retain members on a long-term basis are just a few of the many points of differentiation; use them to your advantage.
Know that you don’t have to “go it alone” Fannie Mae offers several ways for you to expand your business. Through the strategic relationship with Prime Alliance, products such as MyCommunityMortgage™ (MCM™), and Flex-Plus™ 103%, technology tools like Desktop Undewriter® and Fannie Mae’s local Community Business Centers, you have a wealth of resources at your disposal.
The challenges associated with growing your market share are real. But if you approach the strategic process creatively and execute with excellence, you can position yourself for significant success.
For more information on how Fannie Mae can help you develop strategies for success, visit the Credit Unions page on eFannieMae.com or contact Tammy Trefny at tammy_j_trefny@fanniemae.com.
As the credit union industry aims to grow its mortgage market share from 2% to 10%, it’s more important than ever for you to be creative in designing and executing strategies to tackle this goal. Here are some concepts, shared by Fannie Mae’s Mercy Jimenez at the recent Credit Union Housing Roundtable, to consider in new strategy development:
Good strategy is second to good execution – define your business strategically but make sure you can execute with excellence. Strategy is about weighing your options and making the best net strategic trade off to achieve your goal. Execution is about aligning the right ownership and resources to deliver on your plan effectively and efficiently.
Keep up with the pace of change – be open to new ideas and be certain you have a strong understanding of the competitive forces at work in the industry.
Strategic companies are receptive to growth opportunities, even when they know it will take time for them to bear fruit. They are willing to experiment with pilots, and they don’t exhaust massive resources to make that happen.
Stay agile – the market impacts strategy and today’s market is a changing one. Is your strategy designed to change with the market?
-Continued-
Who Says the Loan Fulfillment Center (LFC) Can’t be Fun?
... Not Prime Alliance credit unions San Diego County Credit Union or Ent FCU!
| Ent FCU ($2B; 160K Mbrs), located in Colorado Springs, CO, recently implemented the LFC. Leading the implementation were Director of Real Estate Lending Jon Paukovich, Real Estate Lending Systems Administrator Jodi Calvert and Mortgage Loan Consultant Kelly Crawford. Along with the Retail Lending Center (RLC), the LFC will combine each credit union's business rules with automated underwriting system findings to create an individual roadmap for each and every real estate loan.
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The credit union’s staff will only perform those tasks necessary to close the loan – no more, no less. Prime Alliance offers the only end-to-end turn-key mortgage platform available in the credit union industry today. Every Ent FCU and San Diego County Credit Union member will get the attention they deserve, and the home loan to finance their dream. Talk about getting your kicks on Route LFC 66. Congratulations to ENT and SDCCU for a Very Successful LFC Conversion! |
San Diego County Credit Union ($3.4B; 175K Mbrs), located in San Diego, CA, recently implemented the LFC. Leading the implementation was SVP of Real Estate and Business Services Scott Norris (pictured in center).
Way to Go PSECU!
Using their 1st Quarter 2007 Member newsletter, Pennsylvania State Employees Credit Union featured their real estate program highlighting the following numerous benefits:
- PSECU is proud to offer an inventive program that puts a team of real estate professionals working for their members.
- PSECU Real Estate Services does most of the work, saving members time and money! Members save money with the credit union’s cash-back program and a package called The Home-Buyer Privileges.
Cash-Back Program
The exact savings are based on the value of the home bought and/or sold. Members can double their savings by buying and selling through PSECU Real Estate Services!
| Loan Value Rebate | |
|---|---|
| $100,000 $600 | |
| $200,000 $1,200 | |
| $250,000 $1,500 | |
| $350,000 $2,100 | |
| $500,000 $3,000 | |
| $900,000 $5,400 | |
Rebate examples are based upon the purchase of a home where a real estate commission of 3% is paid to the selling office and 3% to the listing office.
The HomeBuyer Privileges®*
This program brings you discounts and savings on:
Save 10% off a purchase up to $2,000 at Home Depot (savings up to $200)
Penske Truck Rentals/Moving Accessories
Circuit City Discounts
Rebates & Savings on GE Appliances
PETSMART™
clubfurniture.com
GE Residential Long Distance
Barnes & Noble
Selected Hotels and Car Rentals
Finally, PSECU explains the role of the Member Advocate within their experienced mortgage consultants’ team. The Member Advocate serves as the member’s ongoing contact with PSECU Real Estate Services, explaining how the program works and determining the members needs.
The Member Advocate introduces the member to a real estate agent best suited to help that individual member accomplish their goals. Only the best real estate agents are certified to work with credit union members!
THANK YOU PSECU! Finding a home can be a burdensome and frustrating experience. But thanks to PSECU and Prime Alliance Real Estate Services, this credit union is making affordable home ownership dreams come true!