Conquering 2024 challenges in mortgage lending

Mortgage loan originations are projected to increase 10-15% this year, albeit from a very low level of activity in 2023. However, despite a more optimistic forecast, challenges remain for first-time home buyers who continue to face hurdles such as limited affordable housing inventory and higher rates.

That’s why it’s crucial for credit unions to take advantage of every mortgage opportunity that comes their way. Having the right partner can make this significantly easier.

Here are some of the ways QRL Financial Services can help credit unions navigate this year’s issues.

Gain scalability

Just a few years ago, credit unions had more loans than they had staff to handle, but the situation has recently reversed—now, credit unions have more staff members than loans. With QRL Financial as their mortgage services partner, credit unions can offer more mortgage options while scaling staffing up and down to capture as many loans as possible—leading to improved efficiencies.

With this strong partnership, credit unions can:

• Capture and close more loans, expanding product offerings with programs such as FHA/VA/USDA (historically 30-40% of purchase loans closed).
• Scale staffing up and down with a partner who understands market shifts and lending priorities.
• Rely on a very knowledgeable and experienced partner, one who can also deliver the expertise and compliance needed for government loans.
• Benefit from a dedicated loan coordinator handling any needs.

Maximize profitability

Profitability remains a concern for mortgage departments as demand fluctuates and traditional staffing models and overhead costs pose challenges. QRL Financial brings strategies that can help credit unions substantially reduce fixed costs. For example, the mortgage partner’s fulfillment service fee is only paid on closed loans and can be passed on to the borrower. Credit unions can reduce overhead expenses and benefit by generating revenue with minimal or no costs. In summary, the credit union has:

• Complete fulfillment services and options to choose from.
• The ability to scale staffing up and down and better manage overhead.
• Control over mortgage department expenses that they can easily match to work fluctuations.

Better manage liquidity

As liquidity ebbs and flows, credit unions must stay agile and adopt strategies to make the most of mortgage loan opportunities. Working with QRL Financial as a mortgage fulfillment partner lets credit unions close more loans and generate revenue in periods of lower liquidity, while remaining selective about the loans they retain when liquidity levels are higher.

Therefore, a trustworthy mortgage services provider helps credit unions manage liquidity by:

• Enabling them to capture loans without tying up their own liquidity —selling loans to trusted investors.
• Supporting the credit union in the good times and the bad, not leaving the market right when they’re needed.

Gain more mortgage opportunities in 2024 without expanding staff or overhead.

For more information, contact QRL Financial Services at (888) 766-4734 or solutions@qrlfinancial.com.

This article does not represent the views of or an endorsement by America’s Credit Unions.