A year-end forecast by the Mortgage Bankers Association anticipates mortgage rates will hover around 6.5% for the foreseeable future. It’s been a rough couple of years for homeowners. High interest rates and prices have trapped many of them in place and prevented first-time buyers from breaking into homeownership. In today’s lending environment, how can credit union mortgage programs help?
To tackle this problem, Wings Financial Credit Union ($9.3B, Apple Valley, MN) created a win-win solution for the credit union and its members with a repricing promotion aimed at borrowers who were being locked out of refinancing or purchasing a new home.
In this webinar clip, Leah Patino, vice president of mortgage lending at Wings, shares how her team offered members with mortgages under 4% an exclusive 2% rate discount, with a 5% floor, on a new loan. Initial marketing efforts, including email campaigns and personalized calls, returned mixed results, so Wings refined its approach by waiving origination fees, adding online and mobile messaging, and extending deadlines.
The revamped strategy yielded 86 applications; 40% of those applications converted to a new loan at a higher rate. Members appreciated the proactive approach, with some sharing heartfelt stories of how the program enabled life changes like purchasing new homes.
Building on its success, Wings continues to iterate the program, targeting different member segments and adapting offers to meet evolving needs — all while keeping costs minimal.
This innovative approach highlights the power of adaptability and member-focused solutions in credit union lending.
Read more about how Wings unlocked opportunity in its mortgage portfolio in “How One Credit Union Is Combatting The Lock-In Effect.”