The NAFCU Journal May-June 2020 - 32

''

We have deeply rooted, loyal customers, but the
younger generation especially is shopping around and often
online. Whoever makes the first call back to them may end
up being the one to process the loan, so it's important to
make a conscious effort to get back to them quickly.

''

-  PATRICK ZARIFIAN, SENIOR VICE PRESIDENT AND CHIEF LENDING OFFICER, CALIFORNIA CREDIT UNION

2. Start with the familiar. It's best to
start out with your own members and
perfect the process before you expand
your base, credit union executives say.

call back to them may end up being the
one to process the loan, so it's important
to make a conscious effort to get back to
them quickly."

"Especially if you are a smaller credit
union - $50 million to $100 million
- it's extremely difficult to enter the
mortgage market because there is a compliance burden, and the process technology is expensive," says Anderson, who
recommends partnering with a third
party to share the upfront cost.

Millennials who are used to banking
online also expect to conduct their mortgage business online, he says. California
Credit Union recently partnered with a
new vendor to provide mobile access to
apply for a mortgage, correspond with
the credit union and submit paperwork
by simply taking a picture with a cellphone rather than scanning and emailing documents.

3. Invest in marketing. Many people
still think of credit unions only for auto
loans or personal loans, so spread the
word on the other types of loans you
handle. And don't forget the power of
social media to tweet a catchy reminder
or post an Instagram picture. "Use of
social media as a tool is continuing
to evolve, but it's a great channel for
awareness," Phillips says.
TDECU also makes it a point to volunteer in the community to raise awareness of their presence as a financial ally.
"Hopefully they will think of us as the
place to come for help," Phillips says.
4. Harness technology to work for you
- and your members. As important
as relationships are, many prospective
homebuyers start their mortgage search
by themselves online, so it's imperative
that credit unions make use of existing
technology to ensure a competitive presence in those virtual spaces.
"We have deeply rooted, loyal customers,
but the younger generation especially
is shopping around and often online,"
Zarifian says. "Whoever makes the first
32

The TDECU Mortgage Simplified app
is front and center on the credit union's
home loans webpage, promising all the
tools needed to "Make Home Happen"
and giving members the ability to get
started quickly and stay updated and
engaged, Phillips says.
The online process is only expected to
heighten with more online notaries, and
the capability for electronic signatures
and e-closings will replace the sit-downand-sign-your-life-away stack of documents traditionally associated with a
mortgage signing, Anderson says. "Credit
unions will need to jump on this as soon
as it's available, or lose business to others
that do," he says.
Technology can streamline the process
for the lender as well; for example, a work
number can be used to verify employment
and income electronically. California
Credit Union is in the process of rolling
out a streamlined asset verification system
in which, if members opt in during the
verification process, the credit union can
access their bank statements automatically.

5. Keep an eye on the financial horizon.
Pay attention to daily economic indicators, and respond accordingly, Anderson says. "Everything may be booming
now, but are we positioning ourselves
to withstand a recession where interest
rates may drop or members may lose
their jobs?" he says. "If indicators go
that way, it may mean tweaking our loan
guidelines or reducing our maximum
loan-to-value ratio."
Along with that, executives advise keeping tabs on regulatory changes coming
down the pike, such as the proposed exit
from conservatorship by Fannie Mae and
Freddie Mac. The secondary mortgage
market remains an important one for
credit unions because it allows them to
diversify risk and fund more mortgages
while retaining servicing rights.
"If Fannie Mae and Freddie Mac go independent, that will have a major impact
on the market," Anderson says. "Without
backing from the federal government,
mortgages could cost more for borrowers, or smaller credit unions might not
be able to carry them in the portfolio."
Whatever the future, a feeling of engagement, even in these digital days of
ultraconvenience, still ranks high on
a homebuyer's list of must-haves, and
credit unions are perfectly poised to
meet that need.
"Making homebuyers feel important in the
process is key," Phillips says. "They may
not be our only customers, but we want
them to feel like they are."
Carolyn Kimmel is a freelance writer and
editor based in Pennsylvania.
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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