The last 18 months were historic for the mortgage industry. The COVID-19 crisis sparked a record number of refinances, and purchase volume remained strong amid limited supply.

But nothing lasts forever, and recent industry predictions forecast a challenging market ahead. However, 2022 doesn’t have to be a lost cause. Upcoming changes to the mortgage market present a significant opportunity for credit unions that are willing to implement creative, proactive strategies.

As you’re budgeting, forecasting, and planning for 2022, we recommend considering these five tactics to help prepare for and offset a predicted reduction in production volume:

• Review your cost structure. As you go through your budgets and project revenue and expense figures, carefully examine your operations and staffing. Identifying opportunities to create variable expenses can increase profits from your mortgage business.
• Grow the top end of the funnel. This is the time for proactive marketing. One way to do this is to cultivate realtor relationships within your membership base. Engaging with realtors and establishing a referral program can be a member-to-member perk.
• Use the data you have for targeted marketing. The member data you have is invaluable. Consider third-party partners like mortgage CUSOs that can act on that information via outbound sales efforts among your existing membership base.
• Market to cash-out refinance candidates. Monitor your current servicing portfolio and identify members with equity who may be interested in debt consolidation. Given continuing real estate inventory challenges, your credit union can appeal to those mortgage holders who are open to significant home improvements as an alternative to what they are unable to find in the marketplace.
• Invest in your tech stack. Members are increasingly open to originating mortgage transactions online. Work toward being able to provide an intuitive, seamless online pre-approval process, or simplify what you already offer. To meet demand as quickly as possible, partner with a third party with member-facing technology that cost-effectively facilitates such a process.

With strategic preparation and focus on areas where you can add value for homebuyers and refinance candidates, credit unions can turn the potential challenges of 2022 into an opportunity to sustain mortgage volume.

If you’re interested in budget-friendly support and expertise to help serve your members in the new year, consider partnering with a mortgage CUSO like TruHome.

JEFF VOSSEN is senior vice president of mortgage originations and operations at TruHome Solutions.

GREG SPURGEON is senior vice president of secondary marketing at TruHome Solutions.