The NAFCU Journal May-June 2020 - 30

through relatively unscathed," he says.
"With low interest rates bringing people
back into the market now, it's a second
chance for credit unions to grow and
emphasize that relationship we have with
our members."
Playing to another strength, credit
unions can highlight the fact that they
may lend to people who might not get
approved elsewhere.
"Why use a credit union? Your story is
heard, versus being a number or an application," says Zarifian. "If there are some
issues with your credit, we hear your story
and try to work with you. That puts the
applicant at ease. Being a credit union,
we give a more personalized touch to the
applicant and, internally, the relationship
between underwriters and loan officers
works to the applicant's benefit and makes
the process smoother and faster."
At a credit union, mortgage loan
decisions aren't made via some off-site
corporate checklist, but right where the
applicant lives. "Our decision process is
at the local level," Phillips says, "and we
have the ability to create products we
keep in our own portfolio."
The ability to offer things like a portfolio
product with no required down payment,

''

The last thing we want to do
is put people in a home they may
qualify for but can't afford. ... We
look together at what someone
is really bringing home and what
kinds of reserves they have.

''

-  JERRY ANDERSON, VICE PRESIDENT OF RESIDENTIAL LENDING,
ALLIANT CREDIT UNION

or only 3 percent to 5 percent down
with a Fannie Mae or Freddie Mac loan,
makes a credit union an attractive option,
Anderson says.
And then there are the ways a credit
union takes extra steps to ensure the
move to homeownership is truly viable
for its member. "The last thing we want
to do is put people in a home they may
qualify for but can't afford," Anderson
says. "For example, the qualifying process
uses gross income, but you don't get paid
your gross income. We look together at
what someone is really bringing home
and what kinds of reserves they have."
A realistic pre-qualifying check ensures
the best outcome for a successful mortgage, executives say. And education

is an important ally in making sure
members won't default on loans. Some
credit unions, such as TDECU, hold
homebuyer seminars for members to
learn more about buying a home and
getting a mortgage.
Excellent customer service and
communication are keys to a smooth
homebuying process, and for credit
unions, that close relationship continues long after the closing, as the
member stays connected through
everyday financial dealings.
"If they have mortgage issues later, they
can easily just walk in and talk to us or
call us," Zarifian says. "Members took
their loan with us because they trusted
us, and we want to honor that."

Ready to Take the Plunge?

For credit unions just dipping their toes
into the waters of the home finance
market, here are some tips from those
already doing swimmingly.

1. Get your ducks in a row. Make sure
you have the structure and staff in place
to ensure success, from the origination
process through to - and after - loan
approval and closing.
"You can't expect to do it well with just
your existing consumer lending staff -
you have to commit the resources that it
demands," Zarifian says. "You've only got
one chance to do it right. If you commit to a 30-day turnaround on the loan,
make sure it's done in 30 days, or you'll
get a bad reputation."
30

THE NAFCU JOURNAL  MAY-JUNE 2020



The NAFCU Journal May-June 2020

Table of Contents for the Digital Edition of The NAFCU Journal May-June 2020

The NAFCU Journal May-June 2020 - Cover1
The NAFCU Journal May-June 2020 - Cover2
The NAFCU Journal May-June 2020 - 1
The NAFCU Journal May-June 2020 - 2
The NAFCU Journal May-June 2020 - 3
The NAFCU Journal May-June 2020 - 4
The NAFCU Journal May-June 2020 - 5
The NAFCU Journal May-June 2020 - 6
The NAFCU Journal May-June 2020 - 7
The NAFCU Journal May-June 2020 - 8
The NAFCU Journal May-June 2020 - 9
The NAFCU Journal May-June 2020 - 10
The NAFCU Journal May-June 2020 - 11
The NAFCU Journal May-June 2020 - 12
The NAFCU Journal May-June 2020 - 13
The NAFCU Journal May-June 2020 - 14
The NAFCU Journal May-June 2020 - 15
The NAFCU Journal May-June 2020 - 16
The NAFCU Journal May-June 2020 - 17
The NAFCU Journal May-June 2020 - 18
The NAFCU Journal May-June 2020 - 19
The NAFCU Journal May-June 2020 - 20
The NAFCU Journal May-June 2020 - 21
The NAFCU Journal May-June 2020 - 22
The NAFCU Journal May-June 2020 - 23
The NAFCU Journal May-June 2020 - 24
The NAFCU Journal May-June 2020 - 25
The NAFCU Journal May-June 2020 - 26
The NAFCU Journal May-June 2020 - 27
The NAFCU Journal May-June 2020 - 28
The NAFCU Journal May-June 2020 - 29
The NAFCU Journal May-June 2020 - 30
The NAFCU Journal May-June 2020 - 31
The NAFCU Journal May-June 2020 - 32
The NAFCU Journal May-June 2020 - 33
The NAFCU Journal May-June 2020 - 34
The NAFCU Journal May-June 2020 - 35
The NAFCU Journal May-June 2020 - 36
The NAFCU Journal May-June 2020 - 37
The NAFCU Journal May-June 2020 - 38
The NAFCU Journal May-June 2020 - 39
The NAFCU Journal May-June 2020 - 40
The NAFCU Journal May-June 2020 - 41
The NAFCU Journal May-June 2020 - 42
The NAFCU Journal May-June 2020 - 43
The NAFCU Journal May-June 2020 - 44
The NAFCU Journal May-June 2020 - Cover3
The NAFCU Journal May-June 2020 - Cover4
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