On Feb. 8, the New England Patriots rush back into the big game for the first time since 2018. Meanwhile, the Seattle Seahawks will make their first showing since 2014. Both teams are riding high on the sudden success of two new quarterbacks — Drake Maye for the Patriots and Sam Darnold for Seattle.

Before these teams battle it out on the gridiron, though, Callahan is showing what smart benchmarking can reveal using our Callahan Bowl prediction model. Because both quarterbacks are new “members” of the Super Bowl club, this year we’re looking at how two regions stack up in terms of attracting new members to the movement.

For the sake of peer comparisons, the Seahawks peer group consists of credit unions in Washington state, whereas the Patriots peer group pulls in performance from Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and the eastern half of Connecticut.

To state the obvious, the NFL is not affiliated with this prediction, nor does it endorse our findings. This is all in good fun. Now, back to the game.

First Half: Member Growth

In football, new teams making a competitive play for the title are what fill stadiums and build loyalty. The New England Patriots have a Super Bowl showing that tips into the double-digits, whereas the Seahawks’ appearances can be counted on one hand. In fact, they haven’t  appeared in the Super Bowl in more than a decade and have just one win to their name.

In credit unions, it’s new members that drive the movement forward. And when it comes to member growth, the Seahawks have a decisive edge. In a classic match up of member growth, Washington state’s credit unions best New England’s 2.54% to 1.31%.

MEMBER GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Second Half: Member Relationships

In the NFL, it’s important that players bring everything they’ve got and leave it all out on the field. If the talent is good enough, such dedication will win championships. And sometimes, like with Sam Darnold and the Seahawks, a player might have a surprising amount to offer.

Although member growth is an important metric in credit union performance, how much new members bring to the table is just as beneficial to the bottom line. And in this respect, New England edges out Washington 2.55% to 2.43%. The game is all tied up and headed into overtime.

AVERAGE MEMBER RELATIONSHIP
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

OT: Branch Expansion

Headed into overtime, both teams have a chance to win. Who has the performance of a champion?

If the best defense truly is a good offense, then expanding branches into new territories is a sure way to score new members. When we crunch the numbers, Washington comes out on top. Credit unions branches in the Evergreen State increased 6.25% quarter-over-quarter; in New England, growth was 0.40%.

BRANCH GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

There you have it, the Callahan’s proprietary Callahan Bowl algorithm, or “Cal-gorithm,” has spoken: the Seattle Seahawks will be your Super Bowl LX champions!

The post Credit Union Data Predicts Who Will Win Super Bowl 2026 appeared first on CreditUnions.com.

As 2025 winds down, the editors, writers, analysts look back at what topics resonated and what voices stood out this year. From strengthening operations to enhancing member engagement, preparing for emerging technology to navigating competitive pressures, the following curation remains essential reading.

AI Improves Training At Premier America

Premier America Credit Union ($3.3B, Chatsworth, CA) uses artificial intelligence to help staff build rapport with members. Employees love it, efficiency is up, and service is better than ever.

Why does Alix like this piece?

“I chose this article because it shows AI at its best — not replacing people, but sharpening the human skills that make credit unions strong. In a year when AI dominated headlines, Premier America offered a grounded example of how to turn a buzzy technology into better training, better confidence, and better service.”

Read it today.

What’s In A Name: Chief Product Officer

At Bay Federal Credit Union ($1.8B, Capitola, CA), Brooke Morley improves communication and collaboration across departments to offer members the products they want and need.

Why does Alex like this piece?

“This piece stood out to me because it explores the emergence of a product officer role within credit unions, a position well-established in other industries but still relatively new in this space. I believe it has the potential to significantly influence how credit unions innovate and serve their members.”

Read it today.

What Can Credit Unions Learn From Rocket Mortgage?

The mortgage lender’s Super Bowl 2025 ad isn’t just smart marketing. It’s a challenge to credit unions to step up their storytelling game and connect with members on a deeper, more emotional level.

Why does Rebecca like this piece?

“This story hits all the right notes for me. It’s fresh, fun, and grounded in real-world insight. I love stories that inspire credit unions to think differently about the market and their shops. Alexandra draws on firsthand experience talking with credit union leaders to offer practical insights on untapped opportunities that can make a real difference. This piece captures that creative energy.”

Read it today.

Navigant Levels Up Its Data-Driven Branching Strategy

Navigant Credit Union ($4.0B, Smithfield, RI) is using internal and third-party data to better understand branch traffic patterns and consumer banking behaviors — and the results are paying off far faster than expected.

Why does Aaron like this piece?

“Navigant Credit Union isn’t just picking new branch locations by throwing a dart at a map. Instead, leaders there are backing up their decisions with all kinds of data, including transaction patterns, census stats, and more. It’s a modern strategy to fuel one of the most old-school methods of member service.”
Read it today.

Michigan Legacy Takes A Scientific Approach To Spotting Elder Financial Abuse

A partnership with the Institute of Gerontology at Wayne State University has helped Michigan Legacy Credit Union ($218.7M, Wyandotte, MI) reduce reports of elder fraud by as much as 50%.

Why does Savana like this piece?

“Bad actors are only growing more sophisticated. With the average age of credit union members coming in at 53 right now, it’s essential for institutions to think about how they prevent and identify cases of elder financial abuse. Retirement and estate planning are only part of the puzzle when it comes to this stage of life. Proactivity is key. Michigan Legacy’s work with Dr. Peter Lichtenberg is an amazing example of how this can make a measurable difference.”

Read it today.

What Is Stagflation? And What Does It Mean For Credit Unions?

The growing risk of stagflation puts the Federal Reserve in a difficult position and raises the stakes on potential consequences for member finances, investment portfolios, and margin management.

Why does Will like this piece?

“It paints a picture of complex economic ideas and explains how they affect Main Street, or in other words: the people credit unions are tasked to serve. In a period of so much uncertainty around policy decisions, the “this or that” structure is helpful to understand the potential pros and cons of different paths.”

Read it today.

How Well Do You Know The Gen Z Economy?

It was great to see the Callahan & Associates editorial team, specifically editorial analyst Andrew Lepczyk, employ a new format this year. Andrew is out on well-deserved leave and unable to share his favorite piece from 2025, but his work deserves recognition.

Take the test today.

The post CreditUnions.com Top Picks For 2025 appeared first on CreditUnions.com.

Navigant has long used data to make branching decisions but in the past two year has made a concerted effort to level up. Today, it incorporates member transaction patterns, demographic and census data, and third-party data from third-party providers.

“That really allowed us to use data more deeply to drive the decision-making process — not as a supplement as much as one of those primary drivers to how we look at branching,” says Mike Mattone, senior vice president and chief retail banking and experience officer. “Over the past two years we’ve done a great job with both internal and external resources to put more data up front in our decision-making process.”

One aspect of that includes assigning members a primary branch location based on their past six months of Navigant activity, including in-branch transactions, ATM usage, or member service representative interactions. That data now helps the credit union determine how and where it will place future branches and ATMs.

That work is already bearing fruit. Navigant was planning a new branch in North Kingstown, RI, but as it examined the data determined the planned location wasn’t the right spot. It then selected a different location on the other side of town, which opened in July 2024. Within six months that branch was ahead of schedule on membership and checking account acquisition targets.

“We looked at how our members interact and transact and where we had opportunities for other community pockets that weren’t engaged with membership yet,” Mattone says.

Bigger Isn’t Always Better

Rhode Island’s small size also plays a role in the credit union’s decisions. Using transaction data and third-party data — including deposit-growth trends and market potential at competing banks and credit unions — as well as demographic and zip code data, Navigant looked for locations that weren’t too close to competing institutions.

Because the credit union operates in a smaller market, convenience is critical.

“We looked at even a 10-minute drive time and said ‘Hey, if we’re 10 to 15 minutes away and they’re going to pass five competitors, that’s not going to work,’” Mattone says.

Visualization is so critical — who wants to look at reports all day? You have to see it and make it practical.

This is where data visualization became critical. Navigant has done extensive work in recent years to add visualization into its data strategy, examining concentric circles of branching overlap. That might be where population density has resulted in two branches within five minutes of each other, banking density within a specific area, or areas with smaller populations but strong deposit potential.

“We have all these concentric circles on this big map,” Mattone says. “Here’s our membership concentration, here’s the population, here’s the deposit opportunities, here’s our existing branches, here are competitive branches and what are their asset sizes? Where are those pockets? That visualization is so critical —  who wants to look at reports all day? You have to see it and make it practical.”

Flexibility — And A Learning Curve

Flexibility has been a crucial lesson. Early in this journey, Navigant was assigning members to branches based on where members opened accounts. After it shifted to transaction data, the data became more useful to the credit union because it had a realistic picture of where members were versus where they originated.

That data has also helped Navigant determine what types of facilities it needs in a given location. It now views branches as a member-acquisition play and ATMs are a convenience. As Navigant looks at demographics, geography, deposit-capture potential, and more, data helps determine what kinds of facilities might be most effective in a given area. If deposit-capture potential isn’t high in a given area, ATMs might be a better investment than branches.

The credit union historically relied heavily on third-party providers, but in recent years has invested in bringing talent in-house and ensuring staff have the bandwidth to dig deeply into data for the desired outcomes. Naturally, there was a learning curve along with that, but the end result has been increased efficiency and internal stakeholders with the skills to make data-driven decisions.

People Over PCs

The North Kingstown branch remains Navigant’s biggest success story with this approach so far. More than 180 new members joined at that branch within the first six weeks, with more than half opening checking accounts. Branch staff also hit its home equity loan target well ahead of schedule.

According to Mattone, the secret to that success isn’t data — it’s people.

“You can’t open a branch and then have the team be disengaged because not enough people are coming through the door,” he says.

Navigant continues to invest heavily in training staff to serve members at the high level they expect, which in turn deepens relationships and leads to more business. It also is renovating some spaces to remove teller lines in favor of a universal-banker model that allows for more consultative service.

Ultimately, the work has helped Navigant build its brand, both introducing it to new members and reinforcing its presence in the market with existing ones. That sense of convenience is part of Navigant’s strategy, and Mattone likened branch presence to a new parent checking on a baby. Parents are generally confident their baby is OK at night, but sometimes it’s reassuring to take a quick look in the bedroom just to make sure. It’s not so different when it comes to finances.

“Sometimes it’s just nice to drive by the branch and make sure it’s still there and their money is OK,” Mattone says.

Need A Better Branch Strategy? If you’re looking to identify important trends in your local market, evaluate potential new markets, and uncover hidden gems in vacated branches in 2025 and beyond, Peer Suite from Callahan & Associates helps you do all this and more. Craft a branching strategy that stands out from the rest. Learn how today.

The post Navigant Levels Up Its Data-Driven Branching Strategy appeared first on CreditUnions.com.

Top-Level Takeaways

• Business deposits fuel credit union share growth.
• Cannabis banking emerges as niche opportunity.
• Personal relationships remain key to success.

For Greenwood Credit Union ($868.6M, Warwick, RI), business banking isn’t a new venture – it’s been part of their DNA since the beginning.

“We’ve been doing this for so long that nobody knows exactly when we started,” says Fred Reinhardt, who’s helmed the Ocean State cooperative since 2016. “We’re a little over 75 years in existence and may have been offering business accounts from day one, but at least for 50 years.”

This longstanding commitment to serving businesses is paying off for credit unions like Greenwood and Metro Credit Union ($3.4B, Chelsea, MA). Both institutions are outpacing industry averages for share growth, with business deposits playing a significant role.

YEAR-OVER-YEAR DEPOSIT GROWTH
FOR U.S. CREDIT UNIONS
© Callahan & Associates | CreditUnions.com

Call report data shows Greenwood’s overall deposits increased by 14.56% year-over-year at the end of the first quarter, while Metro posted 6.9% overall share growth. These figures stand out against the industrywide figure of 2.66% growth in insured shares and deposits for the first quarter.

President and CEO Robert Cashman sees the growth in deposits and business services of late as the result of a flight to safety in uncertain times.

“When some regional banks experienced runs and financial stress, we saw significant deposit growth,” he says. “It wasn’t just temporary — this has become sticky money as members have seen our strength and experienced good service.”

When some regional banks experienced runs and financial stress, we saw significant deposit growth. It wasn’t just temporary – this has become sticky money as members have seen our strength and experienced good service.

Casting A Wide Net For Commercial Clients

Both credit unions serve a diverse range of business members, reflecting their local economies and fields of membership.

Greenwood, which operates from a single branch, counts nearly 2,000 business members among its core membership of approximately 12,000 local account holders. These businesses range from small storefronts to larger commercial real estate projects. Reinhardt notes the credit union’s largest loan to date is a $9 million construction loan for an 80-unit apartment complex.

Metro’s business banking relationships run a similar gamut.

“We serve anyone from someone doing six units to someone doing 100 units,” Cashman says. “We’re very good at risk management, with internal guidelines to avoid concentrations in one borrower, geographic area, or project type.”

Greenwood has found a niche serving Rhode Island’s legal cannabis industry, with a focus on cultivators who sell their product to legal dispensaries. The credit union currently serves about a half-dozen legal cannabis shops, while some 35 of the state’s 60 licensed growers bank with Greenwood.

This specialized banking has contributed to Greenwood’s deposit growth, although Reinhardt cautions that cannabis account balances can fluctuate significantly based on business cycles and regulatory environments.

Relationships, Community Engagement Are Key

Both credit unions emphasize the importance of experienced staff in managing business relationships.

Metro has built a team of eight to 10 people covering the full spectrum of business banking, from origination to servicing.

“We want people with experience through multiple economic cycles, who can react and read the landscape well,” Cashman says.

Greenwood operates with a lean team of three commercial lenders, plus a chief lending officer who also manages relationships. This efficient structure aligns with its single-branch business model, Reinhardt says.

Despite their credit unions’ different sizes, both CEOs stress the importance of community involvement in cultivating business relationships.

“Part of our commitment is to our local community,” Reinhardt says. “We invest not only financial resources but the time and talent of our staff in various non-profits and local towns. You make connections, build relationships, and it absolutely helps attract more business.”

Cashman agrees.

“Being ingrained in the community is really important,” he says. “People have felt comfortable coming to us because they know we’re here for the community.”

Although maintaining a focus on personal relationships remains a key priority, both credit unions have also invested heavily in technology to serve their business members effectively. That includes everything from upgrading online banking platforms to give commercial clients a better user experience to recognizing the need for flexible modern payment options.

“People have pop-up ventures here and there, like at farmers markets,” Reinhardt says. “They need the hardware to accept card payments in those scenarios.”

Metro has similarly embraced technology while maintaining its commitment to personal service. Despite new digital offerings, “we’re still local,” Cashman emphasizes.

“You can get answers very quickly,” he says. “And it’s not unusual for me to speak directly with commercial borrowers.”

When our commercial lending team makes a loan, we’re soliciting the deposit accounts as part of it.

Making Business Personal: Acorns To Oaks

The high-tech, high-touch approach helps both credit unions expand beyond business services and into personal banking when possible.

“When our commercial lending team makes a loan, we’re soliciting the deposit accounts as part of it,” Reinhardt says.

The pandemic was a good example of seizing such opportunities, when Greenwood stepped up to handle Paycheck Protection Program loans big banks wouldn’t. One quarter of those new commercial clients are still members.

Metro takes a similar approach, viewing each business relationship as an opportunity to expand services.

“The more products and services an organization has with you, the more stickiness and the more ingrained they become,” Cashman explains. “We’ll help them get established, starting off with something small, and helping them grow and build.”

Both Reinhardt and Cashman emphasize that the key to their success in business banking — and in growing those relationships into personal accounts — comes down to communication and presence in the community.

“Banking is a relationship business; it can’t be viewed as just transactions,” Cashman says. “That’s very cold. The relationship piece is what warms it up. We’re set ourselves apart because of strong relationships and caring.”

Nurturing relationships from their earliest stages has proven the recipe for long-term success for the Beantown shop. As Cashman puts it, “One of my mentors used to say, ‘Little acorns grow big trees.'”

The post Beating The Odds With Business Checking appeared first on CreditUnions.com.

• Greenwood operates as a full-service credit union for members that live within five miles of the cooperative’s lone branch.

• It also serves members from all corners of the country that have loan-only relationships.

Greenwood Credit Union($657.4M, Warwick, RI) is a mid-size credit union headquartered not from T.F. Green airport, the largest airport in the small state. The creditunion’s name comes from the neighborhood from which it has been operated for more than 75 years, in that time supporting the needs of a core group of members with its traditional banking services.

But that’s just the half of it.

Greenwood is a state-chartered, federally insured credit union with a single branch but a nationwide charter that allows it to do business across the United States, says CEO Fred Reinhardt.

Fred Reinhardt, CEO, Greenwood Credit Union

We see ourselves having two distinct purposes,Reinhardt says.

First, it wants to help its core members those who live in a five-mile radius around its lone branch achieve their long-term financial objectives. But Greenwood is also an active indirect auto lender and works with correspondent lendersof manufactured homes to add mortgages to its books.

We think this is an important role we can take in the financial services industry,the CEO says.

A Core Member

Checking account penetration at Greenwood shows a clear divide between core members and others. Its checking penetration in the second quarter of 2021 was 10.0%, which lagged state peers by nearly 35 percentage points and asset-based and nationwide peers by even more.

CU QUICK FACTS

Greenwood Credit Union
Data as of 06.30.21

HQ:Warwick,RI
ASSETS:$657.4M
MEMBERS:79,054
BRANCHES:1
12-MO SHARE GROWTH:5.6%
12-MO LOAN GROWTH:5.5%
ROA: 1.19%

But that number by itself is misleading, Reinhardt says. In his experience, most consumers maintain checking accounts with the bank or credit union near where they live or work. Combine that preference to the already difficult challenge of deepening wallet share among indirect members and it explains why Greenwood is happy to maintain a loan-only relationship with a segment of its membership.

Most people have a checking account with an institution that is close to them,Reinhardt says.If we have a member that lives in South Carolina, he or she is not going to have a checking account with us in Rhode Island.

On the other hand, more than 55% of members who live within five miles of the credit union have a checking account with Greenwood, Reinhardt says. For those core members, Greenwood offers, on average, a higher interest rate on checking accounts than asset-based and state peers 0.15% compared to 0.10% and 0.05%, respectively. Additionally, Greenwood ranks second among asset-based peers in total dividends paid, and its dividends/income ratio, 24.7%, far outpaces the 8.0% at those same peer credit unions.

But the majority of the credit union’s members join Greenwood through its lending channels. And there’s a strategy behind that,too.

Lender Partners

When Reinhardt joined the credit union as CEO in 2016, he inherited an organization that had originated at least half of its loans from indirect channels since 2004,when Callahan’s indirect lending data begins.

INDIRECT LOANS/TOTAL LOANS

FOR GREENWOOD CREDIT UNIONS | DATA AS OF 06.30.21

In the past three years, Greenwood’s indirect loans to total loans has decreased by 12 percentage points, to 51.5% as of second quarter 2021. That’s still more than double state, asset, and national peer average.

Greenwood had developed hundreds of relationships with auto dealers and does business with some 300 dealer partners across the northeast and as far as Wisconsin and Iowa, Reinhardt says. And although the percentage of indirect loans on its books continues to decline, it remains a primary channel of focus.

We continue to refine our strategy to be as effective, profitable, and efficient as possible,the CEO says.

But in a crowded market, it’s not always easy to stand out.

To do so, Greenwood aims to be as efficient and responsible as possible, investing in technology, like automated decisioning software and other digital tools, to make the application process quicky and easy. In fact, its investments in technology stemfrom a long-term strategy to maintain a single branch, despite asset-based peers managing nine on average.

We made the determination that technology and digital channels would replace the need for more branches,Reinhardt says.We’ve continued to operate with a focus to meet the member digitally as best we can.

In addition, Greenwood does not make loan decisions based on credit score alone, an ethos the CEO believes gives it an edge against other lenders when faced with more challenging applications. Rather than focus solely on FICO, Greenwood’s underwritersfocus on the ability to repay, keying in on income, time in current job, and additional debts, among other items.

Akin to its indirect auto strategy, Greenwood works with a smaller, select number of correspondent lenders that originate manufactured homes across the country. Greenwood underwrites the originated loan itself before paying the originator a fee and portfolioing the loan. In some states, manufactured homes are treated as traditional mortgages whereas in others they are considered chattel, but, in the end, they are interest-earning loans on the credit union’s books that provide homeownership opportunity to the borrowers and help Greenwood’s lending partners achieve their own goals.

Ultimately, Greenwood’s strategy is loan-based, but that doesn’t mean it isn’t driven by core values. It wants to help its core members grow financially and its partner dealers and lenders extend capital to those who need loans. Andif that sounds different, that’s the point.

Our employees embrace our core values every day they come to work, whether they are working with a core member or one of our partners,Reinhardt says.That helps differentiate us against all the competition out there.

The post 2 Sides Of The Coin: How Greenwood Credit Union Serves Core Members And Everyone Else appeared first on CreditUnions.com.

Since the Paycheck Protection Programs inception, 5,467 lenders have approved nearly 12 million loans worth approximately $800 billion. In the programs first three weeks alone when uncertainty was high and loan approvals critical businesses borrowed $342 billion, according to data from the U.S. Small Business Administration, the entity that implemented the program. Processing that volume wasnt easy.

Jeffrey Cascione, SVP Director of Commercial Banking, Navigant Credit Union

Round one approvals were particularly challenging as they were all via email or paper applications, says Jeffrey Cascione, senior vice president and director of commercial banking at Navigant Credit Union ($2.9B, Smithfield, RI). Our teams did a fantastic job working extra hours, coming in early, leaving late, and working weekends.

Across 2020, Navigant made 1,226 PPP loans totaling approximately $83 million.

Lance Hatzenbeller, senior vice president and director of commercial services at Idaho Central Credit Union, says his team, facing similar pressures, put up an online application portal.

Our ultimate goal during the first round was to help as many members and Idahoans as we could while money was available in the program, he says. There were many long days and nights securing PPP funds for our members.

The big Idaho credit union approved more than 4,000 applications in 2020. Like Navigant, that was the most in its state.

But things have changed in the months since that initial flurry of activity. Economies have reopened and business operations have rebounded. Now, the bills on these government-guaranteed loans are coming due.

PPP Applications

The deadline for business owners and approved borrowers to apply for PPP funds was Aug. 8, 2020. The program reopened again on Jan. 11, 2021. On May 31, 2021, the program ended. The government has not indicated it will provide further funding rounds.

A Complicated Program

The Paycheck Protection Program rollout prompted immediate action from credit union auditors.

Any time a program that large gets rolled out that quickly, you have to understand the risks, says Chad Garber, a partner at BKD. Whether thats something not handled properly or additional guidance thats provided after the program is underway.

Chad Garber, Partner, BKD

The credit union industry approved billions of dollars in PPP loans to help its members and communities keep their businesses afloat and their employees compensated. In 2020, 719 credit unions with assets less than $1 billion made $3.1 billion in PPP loans, according to the SBA; the 2021 data is more complete, showing 859 credit unions of all sizes made loans totaling $5.6 billion.

It was a stressful but rewarding time as we assisted so many current and new members, Navigants Cascione says.

But the rollout of PPP was complex, and there were complications. There still are.

PPP lenders had to be SBA-approved. For some credit unions, this represented their first time making these loans, which introduced inexperienced lenders to the complications of government programs.

The biggest challenge when dealing with government-guaranteed loans is to have everything in order, says Bryan Mogensen, a principal at CliftonLarsonAllen. You dot your Is, cross your Ts, and follow the instructions exactly.

For a program as large as the PPP, this was no small task.

Lance Hatzenbeller, SVP Director of Commercial Services, Idaho Central Credit Union

Navigant and Idaho Central leaned heavily on their local SBA offices and SBA.gov for information. Navigant says the National Association of Government Guaranteed Lenders also was a trusted resource, whereas Idaho Central looked to the Coleman Reports.

Understanding eligibility requirements, loan amount calculations, loan terms, loan forgiveness, and more impelled leading auditors to create educational materials for their clients. Things were happening fast, and auditors provided what expertise they could.

BKD created a COVID-19 resource center on its website that included articles, webinars, and other resources for credit unions and its own employees on PPP guidelines.

We were all digesting information as fast as it was coming in, says BKDs Garber. It was the most conference calls Ive ever participated in.

We were all digesting information as fast as it was coming in. It was the most conference calls Ive ever participated in.

Still, the speed at which applications came in remained a challenge. The long hours spent processing requests opened the door for employee burnout and even fraud. CLAs Mogensen heard stories about applicants creating fake businesses. Additionally, some businesses were applying for loans across dozens of financial institutions in an effort to ensure they received a loan.

Financial considerations posed risks as well. From interest rate risks, balance sheet accounting, and the actual forgiveness portion of the process, the Paycheck Protection Program has remained top of mind throughout 2021.

Accounting For The Risks

When approving PPP loans, credit unions had to consider how to account for them.

The SBAs Paycheck Protection Program loans had an interest-bearing component, a flat 1% no matter the size. But the SBA also paid lenders an upfront processing fee based on the loan amount, although the percentages changed as volumes changed.

Initially, the SBA offered lenders:

• 5% for loans $350,000 or less.
• 3% for loans more than $350,000 and less than $2,000,000.
• 1% for loans at least $2,000,000.

For second draw PPP loans, the allocation changed to:

• 50% or $2,500 (whichever is less) for loans $50,000 or less.
• 5% for loans more than $50,000 and less than $350,000.
• 3% for loans at least $350,000.

Most credit unions, including Navigant and Idaho Central, accounted for the loan itself in similar ways. Cascione at Navigant says the credit union accounted for them as regular loans but coded them as PPP for tracking purposes. Hatzenbeller says Idaho Central also assigned these loans their own product code but rolled them into its commercial portfolio.

Im Just A PPP Loan

Most credit unions assigned PPP loans a specific product code but rolled them into their loan portfolio. When the credit union submits the application for forgiveness to the SBA, it should reclassify those loans as an accounts receivable until it receives the money from the SBA.

In general, we advised clients to account for these loans no different from any other loans on their balance sheet, says Andrew Quinnette, senior manager at BKD.

How to account for the fees was another matter.

The biggest issue was how to record those fees, Quinnette says.

Andrew Quinnette, Senior Manager, BKD

In principle, the income was meant to be deferred over the life of the loan, Mogensen at CLA says. But how long is that?

The credit unions Mogensen worked with initially thought they would be paid back within three to six months, certainly by the end of 2020. Rather than amortizing those dollars over a number of years and then recognizing the full fee amount the date the loan was forgiven, many chose to record those fee dollars as income from the start. That wasnt wrong, per se, but it might complicate the next audit.

We have to determine if it was material or not from an audit standpoint, Mogensen says. If it was and they booked it all upfront we have to say, you should have deferred it and it could cause an audit adjustment or even a modified opinion because you werent following GAAP.

Forgive Us Our Cents

Borrowers and lenders should refer to the SBA to determine eligibility for forgiveness. Broadly speaking, however, when a loan is 100% forgiven by the SBA, the credit union removes the receivable, stops collecting interest, and recognizes its deferred fees. What about for loans that arent 100% forgiven? Technically, the borrower would owe you the amount thats not forgiven, says CLAs Mogensen.

Thats for loans a credit union knows were or were not forgiven, but the SBA is still providing loan forgiveness and potentially one-third of applications for forgiveness are still outstanding.

According to the SBAs latest data, current as of May 2021, it has received 3.5 million applications for forgiveness out of the 5.2 million loans approved in 2020. The remaining 1.7 million loans total $160 billion, less than $100,000 a loan on average. There is no final due date for applications for forgiveness, though borrowers must apply before their loan matures, but longer wait periods open up lenders to interest rate risk and liquidity concerns, however minor. Some credit unions are participating out these loans to reduce that risk.

Bryan Mogensen, Principal, CliftonLarsonAllen

Most credit unions currently have plenty of liquidity, but the forgiveness of the PPP loans is making it more challenging to manage, says BKDs Garber. Its hard to know how much, if any, of the PPP loan will be forgiven each month.

At Navigant, two-thirds of its 2020 PPP loans have been forgiven, but the process is ongoing, and the next step for many credit unions will be connecting with their members and encouraging them to apply for it.

Were working with our members to get their loans fully forgiven, Navigants Cascione says. Thats our main focus.

Its forgivable money but its also a loan on which payments will be due if forgiveness is not requested. Youd like to believe that most of them want to get it forgiven and paid off.

Auditors like BKD and CLA have introduced forgiveness application technologies of their own, taking some burden off credit unions willing to outsource that part of the process. And the SBA itself has worked to make the process easier for the smallest borrowers, allowing those with loans $150,000 or less to submit a single, one-page form. Now that the second PPP period is over, too, CLAs Mogensen is optimistic the SBAs processing times will improve as the agency shifts into forgiveness mode.

In fact, both auditors agree that most loans that qualify for forgiveness will be forgiven by the end of 2021 as long as the borrowers submit their applications. But credit unions must continue their work contacting members to get the process started; ultimately, requesting forgiveness is the most important part.

Its forgivable money, but its also a loan on which payments will be due if forgiveness is not requested, Mogensen says. Youd like to believe most of them want it forgiven and paid off.

The post Where Do PPP Loans Fit In The Credit Union Balance Sheet? appeared first on CreditUnions.com.

• Days on market hit an all-time low for U.S. houses, whereas median list pricing hit an all-time high in 2018.

• Despite remaining near historic lows, rising rates are already affecting refinance transactions.

Bob Dorsa, Co-Founder and President, American Credit Union Mortgage Association

Homes for sale sat on the market for only 54 days in June 2018 — an all-time low according to data and analysis from realtor.com.

For lenders hoping to recapture that lightning in a jar, Bob Dorsa, co-founder and president of the American Credit Union Mortgage Association (ACUMA), says the 2019 homebuying season might be different.

The glass is half full, not half empty, Dorsa says. But things will be more difficult.

Several economic factors will weigh heavy upon credit unions that offer mortgages which was approximately 57% of the industry at third quarter 2018, per 5300 Call Report data including the potential for additional rate hikes, a lack of housing supply, and a continued war for talent.

Yet, despite these factors, many credit unions are bullish on the upcoming housing season, having established strategies and programs they believe will benefit their business. Here are four factors credit unions should watch for in the upcoming homebuying season.

No. 1: Rates

CU QUICK FACTS

Digital Credit Union
Data as of 09.30.18

HQ: Marlborough, MA
ASSETS: $8.5B
MEMBERS: 780,664
BRANCHES:22
12-MO SHARE GROWTH: 5.5%
12-MO LOAN GROWTH: 6.2%
ROA: 0.87%

In December 2015, the Federal Reserve increased the federal funds rate for the first time since June 2006, from 0.0 – 0.25% to 0.25 – 0.50%. Since then, the Fed has increased the rate eight times, most recently in December 2018, to its current range of 2.25 – 2.50%. In late January 2019, the central bank voted unanimously to hold its policy rate at this range, citing the necessity for a more patient approach to future adjustments.

While the federal funds rate has increased 250 basis points in four years, the 10-Year Treasury note typically a barometer for setting 30-year fixed mortgage rates — has increased just 40 basis points. On the shorter-end of the yield curve, rates for the 2-Year and 5-Year Treasury notes have increased 119 and 73 basis points, respectively. What does this mean?

Mortgage rates haven’t gone all the way up,says Dorsa.

Caleb Cook, Vice President of Mortgages, Digital Credit Union

This is especially clear when comparing mortgages rates to other products credit union’s offer.

Caleb Cook, vice president of mortgages at Digital Credit Union ($8.5B, Marlborough, MA) agrees.

Mortgage rates are still near historic lows, he says.

And with the Fed’s recent comments, mortgage rates might hold steady for the next several months.

We are likely to see a pause from interest rate hikes at least for the first half of the year, says Darren McNannay, director of real estate at STCU ($3.0B, Liberty Lake, WA). That said, there are many other outside factors that can influence interest rates.

CU QUICK FACTS

STCU
Data as of 09.30.18

HQ: Liberty Lake, WA
ASSETS: $3.0B
MEMBERS: 187,720
BRANCHES: 22
12-MO SHARE GROWTH: 9.0%
12-MO LOAN GROWTH: 9.0%
ROA: 1.11%

Despite remaining near historic lows, rising rates are already affecting refinance transactions. Both McNannay at STCU and Cook at Digital say refinance activity has dropped at their institutions, and Dorsa says rising rates is one of the largest challenges credit union mortgage lenders will face in the coming years.

The shift to a purchase mortgage market is already underway across the industry. According to its 2019 forecast, the Mortgage Bankers Association expects a 4.2% increase in purchase mortgage originations in 2019 and a 12.4% decrease in refinance originations.

However, a shortage in housing stock (see below) will require lenders to fight over a generally smaller purchase market. STCU and Digital have found success in home equity loans, and in Rhode Island, Navigant Credit Union ($2.1B, Smithfield, RI) offers a rehab/renovation loan.

Most people have already financed to lower rates, says Cook at Digital. And rather than cash out their equity for a down payment on a larger home, they’re turning that into home equity loans.

Darren McNannay, Director of Real Estate, STCU

McNannay reports the same thing is happening in STCU’s market of Spokane, WA.

We’re seeing borrowers using the equity in their home to take cash out to remodel, he says. This is due to the lack of inventory and affordability in our markets.

No. 2: Inventory

When it comes to mortgage lending in 2019, inventory weighs heavy on the minds of lenders.

The elephant in the room is inventory and the shortage of quality move-in ready homes on the market, says David DeCubellis, vice president of residential mortgage at Navigant.

According to a January 2019 housing report, the market has hit a record low in terms of available homes per sale. And although the median listing price in the United states grew 7% year-over-year to $289,300 as of January, the number of homes priced at $750,000 or more increased 12%, whereas the number of homes priced at $200,000 or lower declined 6%.

CU QUICK FACTS

Navigant Credit Union
Data as of 09.30.18

HQ: Smithfield, RI
ASSETS: $2.1B
MEMBERS: 92,391
BRANCHES: 19
12-MO SHARE GROWTH: 16.1%
12-MO LOAN GROWTH: 16.2%
ROA: 1.04%

Cook at Digital says the proliferation of high-priced housing is partially the result of builder incentives.

The money is in higher-end homes, he says. They would rather build a $600,000 home and make $200,000 than build three $200,000 homes and only make $50,000 on each. That’s where the banks are lending, and it’s less risky.

But for a first-time homebuyer that wants to break into the market, a $600,000 home can be out of their reach, even with incentives such as discounted closing costs and down payment assistance.

Affordable and available housing stock will have to come from existing housing stock, Cook says. Although even that might not solve the problem entirely.

Boomers are finally starting to move out of their house, Cook says. It’s not brand new, and it’s not 5,000 square feet, but it’s a nice house. That churn will help, but in no way will it solve things. We have an issue in this country where we need to create incentives to build affordable housing.

David DeCubellis, Vice President Of Residential Mortgage, Navigant Credit Union

DeCubellis from Navigant agrees.

Inventory might improve slightly, but we can expect even greater competition among potential buyers and all lending institutions as we fight for a share of a smaller purchase market, he says. It is a time when brand recognition will matter more than ever.

No. 3: Reputation

For DeCubellis, competition, brand loyalty, and market conditions will define 2019, with well-known branding and well-built relationships across the industry reigning as a competitive differentiator.

For those of us with strong brand and identity in the industry, we will lean on our many years of competitive loan programs, exceptional member service, and convenience to separate us from our rivals, DeCubellis says. We must place emphasis on what we do well.

And what Navigant does well is consider its relationships both with industry players and its members.

Three years ago, the credit union launched a first-time homebuyer seminar, which provides not only an avenue for homeownership education and an interest rate reduction but also a platform for local realtors to extend their business. It’s a relationship that pays dividends, too, as it has helped the Rhode Island-based cooperative add more than $500 million to its first mortgage portfolio over the past five years.

CU QUICK FACTS

Navy FCU
Data as of 09.30.18

HQ: Vienna, VA
ASSETS: $95.3B
MEMBERS: 8,121,667
BRANCHES: 324
12-MO SHARE GROWTH: 12.6%
12-MO LOAN GROWTH: 13.1%
ROA: 1.63%

As advocates for our members, we have a responsibility to educate, DeCubellis says. In a shrinking purchase market, the relationships we have with realtors and attorneys are important, as well.

Some credit unions, like Navigant and Navy Federal Credit Union ($95.3B, Vienna, VA), offer construction loans, which give the lenders access to oft-forgotten players in the homebuying process: the builders and the contractors.

It’s important to build trusted relationships will all of those involved in the homebuying process, says Kevin Torres, Navy’s mortgage product strategist who oversees the credit union’s builder liaison program. Connecting with builders is important because it helps our members, especially those first-time homebuyers, find a house they can really make their home.

Navy has teams that process only new construction loans, says Torres. Additionally, the credit union has employees who serve as liaisons between builders and members with construction loans.

Kevin Torres, Mortgage Product Strategist, Navy FCU

Our liaisons ensure there are no delays or issues with the process and that’s it’s a great experience for all involved, Torres says. Our goal is to do the right thing, and that goes both for builders and our members. That builds trust on both sides and helps everyone achieve their goal.

According to DeCubellis, Navigant’s borrowers can incorporate a land purchase into a traditional loan, whether stick-built or modular, with rates that mirror the credit union’s conventional rates and allows for a minimal down payment.

It offers local appeal and allows us to develop strong relationships with local contractors, the vice president says.

In Spokane, to position itself to accommodate a new purchase market, STCU has built external teams to focus on the realtor and builder business, McNannay says. These teams give STCU boots-on-the-ground representatives for one-on-one relationship building and provide realtors and builders points of contact for business that needs to be conducted outside of traditional hours.

McNannay says there are no silver bullets when it comes to building relationships with realtors, but he does have two pieces of advice. First, communicate frequently with the real estate agent and always meet closing dates. Second, make sure that the partnership is a good fit for both parties.

So often I hear of partnerships’ that are strained and not working for either party, McNannay says. My advice is to get a deal from them and see how it goes, then give a deal and see how that goes. There needs to be a level of reciprocity where both parties benefit.

It’s important to build trusted relationships will all of those involved in the homebuying process. Connecting with builders is important because it helps our members find a house they can really make their home.

No. 4: Talent

In November 2018, the U.S. unemployment rate hit a 49-year low of 3.7%. In December, unemployment ticked up to 3.9%. For credit union lenders, this has created a challenging environment to recruit talent.

We’re coming off the refinance boom of the past three years, but back in those days every mortgage lender was so busy it was hard to find qualified people, says Cook at Digital. People were getting poached by non-bank lenders and getting sign-on bonuses and significant raises.

As the refinance market cools, many lenders without non-mortgage asset classes to rely on are starting to lay off qualified lenders a positive for credit unions looking for talent. It’s just not the type of lender Digital is looking for, Cook says.

Our recruitment strategy does not involve traditional or commissioned loan officers, he says. I don’t want them. They are hard to un-train from their ways.

Instead, Cook looks for green applicants, those who have never touched a mortgage. He didn’t have a mortgage background when he started in credit unions two decades ago and believes there are enough free and paid training opportunities to turn these greenies into seasoned vets. That approach is more appealing than expecting a type-A sales person to unlearn habits learned in a commissioned sales structure.

Our model is not focused on individual contributions but a collective team approach throughout the credit union, he says.

Digital does not offer individual incentives. Rather, at the end of each year, it rewards employees from a shared bonus pool known as Success Sharing that pays out depending on whether the credit union hit a number of key objectives, including member, checking, savings, and loan growth.

When hiring new loan officers, Digital focuses on personality first and foremost people who have positive, outgoing personalities and care about customer service and exhibit high levels of empathy. Phone experience is important, too.

If you are a loan officer, you can’t be afraid to pick up the phone, Cook says. Perhaps unsurprisingly, he’s found call center employees make excellent candidates.

Because employees are green, Digital offers leeway when they make mistakes in the beginning, even when those mistakes add up to a few thousand dollars. Allowing new hires to work through challenges and mistakes helps them in their careers, whether that’s in processing or underwriting or as a loan officer. Plus, it helps Digital hire younger employees and establish a bridge to the future.

We’re struggling to attract the next generation of our industry, Cook says. I’m 40. I’m an old guy. This industry is not getting carried forward by me. We need the people who can and will see it through the next 50 years.

Watch Out For These 4 Factors

It takes minutes to compare various aspects of your mortgage portfolio to look out for these factors using MortgageAnalyzer. Let us walk you through your numbers with a custom performance audit.

Learn More

The post 4 Factors To Watch For This Homebuying Season appeared first on CreditUnions.com.

Although building a realtor network can seem like a daunting task, similarities between credit unions and realtors can spur an initial conversation. Both are built upon personal relationships within their communities and customer trust, and share a calling to help individuals achieve home ownership. This Callahan Collection profiles the various approaches credit unions have employed to develop realtor relationships.

DOWNLOAD PDF

The post How To Work With Realtors appeared first on CreditUnions.com.

• Days on market hit an all-time low for U.S. houses, whereas median list pricing hit an all-time high in 2018.

• Despite remaining near historic lows, rising rates are already affecting refinance transactions.

Bob Dorsa, Co-Founder and President, American Credit Union Mortgage Association

Homes for sale sat on the market for only 54 days in June 2018 an all-time low according to data and analysis from realtor.com.

For lenders hoping to recapture that lightning in a jar, Bob Dorsa, co-founder and president of the American Credit Union Mortgage Association (ACUMA), says the 2019 homebuying season might be different.

The glass is half full, not half empty, Dorsa says. But things will be more difficult.

Several economic factors will weigh heavy upon credit unions that offer mortgages which was approximately 57% of the industry at third quarter 2018, per 5300 Call Report data including the potential for additional rate hikes, a lack of housing supply, and a continued war for talent.

Yet, despite these factors, many credit unions are bullish on the upcoming housing season, having established strategies and programs they believe will benefit their business. Here are four factors credit unions should watch for in the upcoming homebuying season.

No. 1: Rates

CU QUICK FACTS

Digital Credit Union
Data as of 09.30.18

HQ: Marlborough, MA
ASSETS: $8.5B
MEMBERS: 780,664
BRANCHES: 22
12-MO SHARE GROWTH: 5.5%
12-MO LOAN GROWTH: 6.2%
ROA: 0.87%

In December 2015, the Federal Reserve increased the federal funds rate for the first time since June 2006, from 0.0 – 0.25% to 0.25 – 0.50%. Since then, the Fed has increased the rate eight times, most recently in December 2018, to its current range of 2.25 – 2.50%. In late January 2019, the central bank voted unanimously to hold its policy rate at this range, citing the necessity for a more patient approach to future adjustments.

While the federal funds rate has increased 250 basis points in four years, the 10-Year Treasury note typically a barometer for setting 30-year fixed mortgage rates has increased just 40 basis points. On the shorter-end of the yield curve, rates for the 2-Year and 5-Year Treasury notes have increased 119 and 73 basis points, respectively. What does this mean?

Mortgage rates haven’t gone all the way up, says Dorsa.

Caleb Cook, Vice President of Mortgages, Digital Credit Union

This is especially clear when comparing mortgages rates to other products credit union’s offer.

Caleb Cook, vice president of mortgages at Digital Credit Union ($8.5B, Marlborough, MA) agrees.

Mortgage rates are still near historic lows, he says.

And with the Fed’s recent comments, mortgage rates might hold steady for the next several months.

We are likely to see a pause from interest rate hikes at least for the first half of the year, says Darren McNannay, director of real estate at STCU ($3.0B, Liberty Lake, WA). That said, there are many other outside factors that can influence interest rates.

CU QUICK FACTS

STCU
Data as of 09.30.18

HQ: Liberty Lake, WA
ASSETS: $3.0B
MEMBERS: 187,720
BRANCHES: 22
12-MO SHARE GROWTH: 9.0%
12-MO LOAN GROWTH: 9.0%
ROA: 1.11%

Despite remaining near historic lows, rising rates are already affecting refinance transactions. Both McNannay at STCU and Cook at Digital say refinance activity has dropped at their institutions, and Dorsa says rising rates is one of the largest challenges credit union mortgage lenders will face in the coming years.

The shift to a purchase mortgage market is already underway across the industry. According to its 2019 forecast, the Mortgage Bankers Association expects a 4.2% increase in purchase mortgage originations in 2019 and a 12.4% decrease in refinance originations.

However, a shortage in housing stock (see below) will require lenders to fight over a generally smaller purchase market. STCU and Digital have found success in home equity loans, and in Rhode Island, Navigant Credit Union ($2.1B, Smithfield, RI) offers a rehab/renovation loan.

Most people have already financed to lower rates, says Cook at Digital. And rather than cash out their equity for a down payment on a larger home, they’re turning that into home equity loans.

Darren McNannay, Director of Real Estate, STCU

McNannay reports the same thing is happening in STCU’s market of Spokane, WA.

We’re seeing borrowers using the equity in their home to take cash out to remodel, he says. This is due to the lack of inventory and affordability in our markets.

No. 2: Inventory

When it comes to mortgage lending in 2019, inventory weighs heavy on the minds of lenders.

The elephant in the room is inventory and the shortage of quality move-in ready homes on the market, says David DeCubellis, vice president of residential mortgage at Navigant.

According to a January 2019 housing report, the market has hit a record low in terms of available homes per sale. And although the median listing price in the United states grew 7% year-over-year to $289,300 as of January, the number of homes priced at $750,000 or more increased 12%, whereas the number of homes priced at $200,000 or lower declined 6%.

CU QUICK FACTS

Navigant Credit Union
Data as of 09.30.18

HQ: Smithfield, RI
ASSETS: $2.1B
MEMBERS: 92,391
BRANCHES: 19
12-MO SHARE GROWTH: 16.1%
12-MO LOAN GROWTH: 16.2%
ROA: 1.04%

Cook at Digital says the proliferation of high-priced housing is partially the result of builder incentives.

The money is in higher-end homes, he says. They would rather build a $600,000 home and make $200,000 than build three $200,000 homes and only make $50,000 on each. That’s where the banks are lending, and it’s less risky.

But for a first-time homebuyer that wants to break into the market, a $600,000 home can be out of their reach, even with incentives such as discounted closing costs and down payment assistance.

Affordable and available housing stock will have to come from existing housing stock, Cook says. Although even that might not solve the problem entirely.

Boomers are finally starting to move out of their house, Cook says. It’s not brand new, and it’s not 5,000 square feet, but it’s a nice house. That churn will help, but in no way will it solve things. We have an issue in this country where we need to create incentives to build affordable housing.

David DeCubellis, Vice President Of Residential Mortgage, Navigant Credit Union

DeCubellis from Navigant agrees.

Inventory might improve slightly, but we can expect even greater competition among potential buyers and all lending institutions as we fight for a share of a smaller purchase market, he says. It is a time when brand recognition will matter more than ever.

No. 3: Reputation

For DeCubellis, competition, brand loyalty, and market conditions will define 2019, with well-known branding and well-built relationships across the industry reigning as a competitive differentiator.

For those of us with strong brand and identity in the industry, we will lean on our many years of competitive loan programs, exceptional member service, and convenience to separate us from our rivals, DeCubellis says. We must place emphasis on what we do well.

And what Navigant does well is consider its relationships both with industry players and its members.

Three years ago, the credit union launched a first-time homebuyer seminar, which provides not only an avenue for homeownership education and an interest rate reduction but also a platform for local realtors to extend their business. It’s a relationship that pays dividends, too, as it has helped the Rhode Island-based cooperative add more than $500 million to its first mortgage portfolio over the past five years.

CU QUICK FACTS

Navy FCU
Data as of 09.30.18

HQ: Vienna, VA
ASSETS: $95.3B
MEMBERS: 8,121,667
BRANCHES: 324
12-MO SHARE GROWTH: 12.6%
12-MO LOAN GROWTH: 13.1%
ROA: 1.63%

As advocates for our members, we have a responsibility to educate, DeCubellis says. In a shrinking purchase market, the relationships we have with realtors and attorneys are important, as well.

Some credit unions, like Navigant and Navy Federal Credit Union ($95.3B, Vienna, VA), offer construction loans, which give the lenders access to oft-forgotten players in the homebuying process: the builders and the contractors.

It’s important to build trusted relationships will all of those involved in the homebuying process, says Kevin Torres, Navy’s mortgage product strategist who oversees the credit union’s builder liaison program. Connecting with builders is important because it helps our members, especially those first-time homebuyers, find a house they can really make their home.

Navy has teams that process only new construction loans, says Torres. Additionally, the credit union has employees who serve as liaisons between builders and members with construction loans.

Kevin Torres, Mortgage Product Strategist, Navy FCU

Our liaisons ensure there are no delays or issues with the process and that’s it’s a great experience for all involved, Torres says. Our goal is to do the right thing, and that goes both for builders and our members. That builds trust on both sides and helps everyone achieve their goal.

According to DeCubellis, Navigant’s borrowers can incorporate a land purchase into a traditional loan, whether stick-built or modular, with rates that mirror the credit union’s conventional rates and allows for a minimal down payment.

It offers local appeal and allows us to develop strong relationships with local contractors, the vice president says.

In Spokane, to position itself to accommodate a new purchase market, STCU has built external teams to focus on the realtor and builder business, McNannay says. These teams give STCU boots-on-the-ground representatives for one-on-one relationship building and provide realtors and builders points of contact for business that needs to be conducted outside of traditional hours.

McNannay says there are no silver bullets when it comes to building relationships with realtors, but he does have two pieces of advice. First, communicate frequently with the real estate agent and always meet closing dates. Second, make sure that the partnership is a good fit for both parties.

So often I hear of partnerships’ that are strained and not working for either party, McNannay says. My advice is to get a deal from them and see how it goes, then give a deal and see how that goes. There needs to be a level of reciprocity where both parties benefit.

It’s important to build trusted relationships will all of those involved in the homebuying process. Connecting with builders is important because it helps our members find a house they can really make their home.

No. 4: Talent

In November 2018, the U.S. unemployment rate hit a 49-year low of 3.7%. In December, unemployment ticked up to 3.9%. For credit union lenders, this has created a challenging environment to recruit talent.

We’re coming off the refinance boom of the past three years, but back in those days every mortgage lender was so busy it was hard to find qualified people, says Cook at Digital. People were getting poached by non-bank lenders and getting sign-on bonuses and significant raises.

As the refinance market cools, many lenders without non-mortgage asset classes to rely on are starting to lay off qualified lenders a positive for credit unions looking for talent. It’s just not the type of lender Digital is looking for, Cook says.

Our recruitment strategy does not involve traditional or commissioned loan officers, he says. I don’t want them. They are hard to un-train from their ways.

Instead, Cook looks for green applicants, those who have never touched a mortgage. He didn’t have a mortgage background when he started in credit unions two decades ago and believes there are enough free and paid training opportunities to turn these greenies into seasoned vets. That approach is more appealing than expecting a type-A sales person to unlearn habits learned in a commissioned sales structure.

Our model is not focused on individual contributions but a collective team approach throughout the credit union, he says.

Digital does not offer individual incentives. Rather, at the end of each year, it rewards employees from a shared bonus pool known as Success Sharing that pays out depending on whether the credit union hit a number of key objectives, including member, checking, savings, and loan growth.

When hiring new loan officers, Digital focuses on personality first and foremost people who have positive, outgoing personalities and care about customer service and exhibit high levels of empathy. Phone experience is important, too.

If you are a loan officer, you can’t be afraid to pick up the phone, Cook says. Perhaps unsurprisingly, he’s found call center employees make excellent candidates.

Because employees are green, Digital offers leeway when they make mistakes in the beginning, even when those mistakes add up to a few thousand dollars. Allowing new hires to work through challenges and mistakes helps them in their careers, whether that’s in processing or underwriting or as a loan officer. Plus, it helps Digital hire younger employees and establish a bridge to the future.

We’re struggling to attract the next generation of our industry, Cook says. I’m 40. I’m an old guy. This industry is not getting carried forward by me. We need the people who can and will see it through the next 50 years.

Watch Out For These 4 Factors

It takes minutes to compare various aspects of your mortgage portfolio to look out for these factors using MortgageAnalyzer. Let us walk you through your numbers with a custom performance audit.

The post 4 Factors To Watch For This Homebuying Season appeared first on CreditUnions.com.

What Is ROM?

ROM goes beyond traditional safety and soundness issues covered by CAMEL scoring to instead assess member value.

Learn morE ABOUT ROM

For credit unions, which typically offer better rates, fees and service than for-profit financial institutions, members recognize benefits in proportion to the extent of their financial transactions and general usage, says the Cornerstone Credit Union League on its website.

But how do credit unions measure the benefit of their membership?

Enter ROM, a comprehensive metric designed by Callahan & Associates that uses savings, lending, and product usage to quantify member value and assign a score to every credit union in the United States. Credit unions across the country use their ROM score to set member-facing goals and hold staff accountable to better serve members.

The interactive graphic below shows the top ROM leader in every state. Filter the view by state, ROM score, and credit union name. Click here to learn more about ROM calculation.

The post Which Credit Union In Every State Returns The Most Value To Members? appeared first on CreditUnions.com.