Credit unions are known for taking care of their members. Leadership is focused on member outcomes and satisfaction. While various leaders in the space differ in their approaches, this singular focus has made them very successful.
That philosophy has allowed these institutions to perform extremely well in offering savings accounts, auto loans, and credit cards to their members.
But when a credit union decides to expand into mortgage lending, which is happening more often these days, the stakes get much higher.
Mortgage lending is complex. It is highly regulated. And it is often the most emotional financial transaction a member will ever make. And yet, it is very important to credit union members who are intent on buying a new home.
Success in mortgage lending requires a different kind of leadership.
Choosing to Support Members in Homeownership
A well-run mortgage operation allows a credit union to participate in one of the most important financial decisions its members will ever make.
When done right, it strengthens relationships, drives member loyalty, and expands the credit union’s role as the member’s primary financial institution.
Credit unions entering or expanding in the mortgage market must take a long-term view. Even the most talented team needs time to build referral relationships, educate members, and establish operational workflows.
Credit union leaders who succeed in the mortgage business set realistic milestones. They measure progress. They never forget that they entered the business for the benefit of their members.
Building the Right Team Comes First
The operational complexity, from compliance and underwriting to secondary market execution, requires specialized expertise.
Because these skills are not often found in the credit union, they must hire and trust outsiders. This can be difficult for some leaders to do.
Further, it requires patience. Building a new mortgage operation, even inside an existing institution, cannot be accomplished overnight.
Leaders who recognize this early tend to move faster because they surround themselves with people who already understand the process.
The best leaders in this space are secure enough to hire people who know more than they do about specific parts of the mortgage process. They rely on experienced professionals and provide the support those teams need to succeed.
That support includes the right technology, the right staffing levels, and the patience required to build a pipeline and grow relationships in the market.
Mortgage lending is complex. But with the right leadership and the right support, it can become one of the most powerful relationship-building tools a credit union has.
If your organization is exploring ways to expand its mortgage capabilities or strengthen its lending operations, talk to Mortgage Cadence about the leading loan origination technology in the mortgage industry.
Find out how we can support your institution’s leaders.
By Cindy Borden, Head of MCP Essentials Sales at Mortgage Cadence
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