FAIRBORN, Ohio (4/24/14)--Credit unions with full-time dedicated originators had a conversion rate of 46% vs. 30% at credit unions with non-dedicated originators, according to a new white paper from myCUmortgage, a Fairborn, Ohio-based credit union service organization.
"Dedicated Originators Play Critical Role in Mortgage Lending Success" was written to show credit unions how full-time, professional mortgage loan originators can help them serve more members with home loans.
Nearly 62% of credit unions currently offer first mortgages, the paper said.
"As we talk to credit unions across the country, we see many who are trying to figure out how to maintain the momentum they've built through the refinance boom," said Tim Mislansky, myCUmortgage president. "However, being good at refinance business does not always translate to being good at purchase business."
The paper highlights why credit unions need loan originators, including what to look for when hiring loan originators and how to convince credit union leadership of the need to add origination staff. It concludes with three case studies focusing on myCUmortgage client credit unions that successfully moved to utilizing full-time professional originators.
One of the case studies features Topmark FCU, Lima, Ohio, as an example of a small credit union that has established an effective mortgage program. The credit union has two dedicated mortgage staff, one originator and one processor.
Much of Topmark's mortgage business has been through word of mouth to new members. When the credit union first committed to a full-time mortgage originator, it had 4,350 members and $17.8 million in assets; today it's at 5,900 members and $27.5 million in assets.
"Offering mortgages has been critical to our credit union's growth," said Angie Maynard, Topmark FCU CEO. "Nearly all of our business is through referrals, and member feedback shows that we're offering them a different level of commitment and service: They tell us that other financial institutions didn't call them back, didn't answer their questions. Having a staff that's knowledgeable, comfortable with mortgages and committed to creating an exceptional member experience has made all the difference."
Credit unions interested in obtaining the white paper can visit myCUmortgage.