We've all heard the expression "elevator pitch," a popular term used to describe a quick, incisive summary of an idea over the course of a 30-second elevator ride. Ideally, it's so focused and succinct that the listener emerges from the ride with a clear idea of the concept a fellow passenger has been touting.
For credit unions, Rocket Mortgage may be the equivalent of an elevator summary. While credit union mortgages are far more consumer-friendly from a rate and fee standpoint, Rocket Mortgage has thrived by focusing on ease and efficiency.
"One of the most common requests we get from credit unions is, 'How do we get a Rocket Mortgage of our own?'" says Tonya Coon, executive vice president of operations at myCUmortgage, a credit union service organization (CUSO) that that provides mortgage solutions to credit unions. "To answer that, we need fast, user-friendly technology that delivers a branded mortgage application process to our credit union clients."
"Rocket Mortgage and Quicken have gotten into the psyche of Americans by selling them on the idea—and expectation—that the mortgage process is almost instantaneous," adds Stephen Hewins, senior vice president at CU Members Mortgage.
"We probably should thank them for that," he says. "That kind of marketing has actually made it easier for credit unions, which thrive on member loyalty, to reach out to members and offer as much speed and ease of use as the most up-to-date mortgage processing."
‘Current technology puts a human face to an otherwise automated process.’
The key, says Hewins, is to find a third-party partner that can offer technology that allows credit unions to compete with well-funded providers such as Rocket Mortgage. "They don't have to be mass marketers like Rocket to compete with it."
"The biggest recent tech development around mortgage lending is enhancing members' experience to the point that they will keep coming back to a credit union for all of their financial affairs," says Joe Dahleen, executive vice president and chief strategy officer at MortgageHippo.
For credit unions, that means investing in modern mortgage technology that allows them to compete with Rocket and similar online mortgage providers, he adds.