LAS VEGAS – Marketing to single females and hosting home buying seminars are just two of several ways credit unions can capture mortgage loans, according to experts who spoke at the America Credit Union Mortgage Association’s Annual Conference here Tuesday.
Annette Melcher, director of product and business development for MGIC, Milwaukee, said a mortgage is “more than just a loan” it is part of a holistic strategy. “Mortgages lead to repeat purchases, cross-sales and referrals, all things that will make a difference on the bottom line.” According to Melcher, banks have identified mortgages and checking accounts as the “stickiest” products, particularly when combined. She said large depository institutions are retooling and improving their customer service.
One way for CUs to fight back, Melcher said, is to improve the number of purchase mortgages they book. Single females accounted for just 10% of real estate purchases in 1981 and still only 15% in 1995, but that figure increased to 23% in 2010. “Consider making this a target segment,” she counseled.
Scott Norris, EVP of residential real estate lending for San Diego County Credit Union said home buyer seminars have been extremely successful for the $5.2-billion CU. The process starts with a vigorous marketing effort, offering special rates or fee discounts for attendees, and interesting and invigorating speakers. “The No. 1 question is always, ‘Why should I buy now?’ Norris noted.
Norris said CUs should partner with local Realtors, host seminars on Saturday mornings to maximize attendance and always ask members for feedback.
