Regulations, fraud, security, and the need for digital engagement will shape the financial services landscape in 2016, according to a panel of credit union technologists, payments providers, and mortgage experts.
Here’s what five providers believe will be the “next big thing” in 2016.
Offset Falling Mortgage Income with Purchase Volume
How will your credit union mortgage loan program grow in 2016?
First mortgages currently make up the largest segment of credit union loan portfolios, and have experienced consistent growth over the last three years.
This growth has been spurred by low interest rates and exceptional refinance loan volume.
The Mortgage Bankers Association’s most recent 2016 market forecast calls for a 35% decline in refinance transactions due to the expected increase in 10-year Treasury yields. This reduction will have a significant impact on credit union income due to lost origination and loan sale income.
To offset this loss, credit unions need to tap into the expected 11% increase in purchase volume for 2016.
Credit unions need to start cultivating Realtor and builder relationships now to take advantage of increased purchase volume next year.
PAUL O’CONNOR is vice president/director of operations for QR Lending.
Next: Focus on regulations, fraud, and security