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What are credit unions doing to increase their visibility in the mortgage market?

Overall credit union mortgage origination activity fell 22% in 2014. Fortunately, the decline for credit unions wasn’t as steep as that reported by members of the American Bankers Association, and the market share for cooperative lenders actually grew to 8.4%. By year-end, mortgages accounted for 41.1% of the total credit union loan portfolio, according to data from Callahan & Associates. For more stats about credit unions and the U.S. housing market, check out the Graphic Of The Week.

Mortgages are a major business that require heart and brains and sometimes a little courage. So this week, is showcasing credit unions that are pushing the envelope while building the bottom line.

According to a CFPB survey of mortgage borrowers, factors ranked as very important by survey respondents include reputation of the lender, recommendations from industry professionals or personal contacts, and past mortgage experience with the lender. These all underscore the importance of proving an outstanding borrower experience. With that in mind, writer Aaron Pugh offers tips on how credit unions can improve each phase of the mortgage process. Read more today.

In October 2009, total loan growth at Ventura County Credit Union was decreasing at a negative clip, its loan-to-share ratio lagged behind its asset-based peers, and its annualized loan originations and efficiency ratio were underwhelming for an institution of its size. That’s when the institution’s new CEO, Joseph Schroeder, challenged VCCU to retool the mortgage department. The credit union underwent a three-step transformation: It expanded its suite of mortgage loans, introduced and upgraded technology, and created a team of mortgage loan originators. To date, results have been tremendous. Learn more.

Interest rate risk is on the minds of credit unions everywhere. In Virginia, Pentagon Federal Credit Union arms itself against market volatility through its use of, well, ARMs. For the past seven years, PenFed has offered a 5/5 ARM and it recently added a 15/15 option. The 5/5 ARM accounted for more than 40% of the nearly $2 billion in first mortgages PenFed made in 2014, according to Craig Olson, the credit union’s senior vice president of mortgage operations. It’s a smart product for PenFed and its members. Learn why today.

After an F-4 tornado struck Tuscaloosa, AL, on April 27, 2011, residents where dazed and dismayed. The twister damaged or destroyed more than 5,000 housing units, including a large chunk of the city’s affordable housing inventory. Showing a dedication to the credit union-friendly concept of the double bottom line, Tuscaloosa Credit Union stepped up with a new program that empowers would-be homeowners and contributes to the rebuilding of the college town. For more on that and tips on to build a better double bottom line, read Tuscaloosa Innovates On Mortgages today.

In addition to our staff-contributed features, has a full lineup of Partner Perspectives that covers opportunities in data, TILA/RESPA changes, underwriting,millennial outreach, and member marketing.

There’s a lot to explore this week. Enjoy.

April 6, 2015

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