FAIRBORN, Ohio-A nationwide advertising blitz appears to be paying off for one mortgage solution provider.
CUSO myCUmortgage has added eight new credit union clients this year and has another 20 or so agreements outstanding, according to President Tim Mislansky. The CUSO, which currently serves about 120 credit unions, only added 14 clients all of last year.
Mislansky credited the surge to a campaign dedicated to expanding the CUSO's presence in new regions. Though Wright-Patt CU founded the company more than a decade ago, myCUmortgage only more recently began serving credit union clients outside of Ohio.
A muddled economic environment may actually be helping improve business for the CUSO as more credit unions are looking to switch vendors or outsource more of their operations to third parties to take advantage of their efficiencies and lower costs to keep their own bottom lines secure, Mislansky noted. As myCUmortgage's largest competitors are for-profit entities, some CUs feel more comfortable working with a wholly credit union owned organization, he added. The costs involved with the CUSO, which Mislansky said was up to 30-60% less than some competitors, as well as the slightly better rates for both the CUs and their members don't hurt either. "Their members are saving money and the CU is earning a higher revenue stream," he added.
Going forward, Mislansky isn't sure where mortgage volume is headed, given the cloudy housing market and the end of some of the government incentives.
"Demand has been fairly decent in the past few months, but it will be interesting to see what happens in the next 30 days as the application for the tax credit has expired," he said, adding that he expects good closing numbers in May and June and possibly more solid numbers through the end of the sales season.
The biggest test for the housing market, and lenders, will likely come in September and October when the buying season ends.
