In a step to bring state-of-the-art online mortgage technology to credit unions, Boeing Employees' Credit Union (BECU) here announced it has entered an alliance with Edina, Minn.- based DEXMA to create an new mortgage CUSO called Prime Alliance Solutions, Inc.
Boeing will hold a majority interest in the new venture. Details of the agreement were not disclosed,
Noting that while 25% of Americans belong to credit unions, CUs originate only 2% of mortgage loans, BECU VP-Chief Lending Officer Joe Brancucci said, "Prime Alliance will make it easy for smaller credit unions to provide leading-edge mortgage loan technology to their members."
Identical To What's On Website
Navigation for the Prime Alliance mortgage application will be identical to that shown on the becu.org website, though participating CUs will all have a customized look and feel, Brancucci said.
The Prime Alliance system uses DEXMA's streamlined online mortgage application, enabling credit unions to offer consumer interfaces and application processes as user-friendly as any available.
Dexma, a leading application service provider (ASP), had developed and currently hosts 30 websites for some 40% of the top 25 mortgage lenders in the U.S., including PNC Mortgage and First Nationwide. Dexma's technology connects lenders with all the parties to a mortgage transaction, simplifying the fulfillment process as well as the user experience, increasing the ability of borrowers to complete an application online.
The Prime Alliance mortgage process features an "intelligent" loan application that walks applicants step-by-step through the process, asking fewer questions than a traditional application and helping them understand their options. When credit union members input financial information, within seconds they can be credit approved for a specific loan amount and loan program.
An advantage to credit unions is that the system's secondary market decisioning engine can be used used by loan officers for face-to-face and telephone application,as wells.
Vandenberg Federal Credit Union, Lompoc, Calif., and San Francisco-based Patelco Credit Union have completed beta-testing of the system and now join BECU in offering the system live on the Internet.
"After endless searching through the co-branded popular choices for Internet mortgage loan origination, we discovered many of them were far too costly and didn't do nearly enough to improve the loan decision process for our members," said Patelco Senior VP Chris Oldag.
The automated underwriting feature of Prime Alliance system works "beautifully" in tandem with Patelco CU's processing system, he said. "We can then serve our members' mortgage borrowing needs via our website with real loan decisions in just minutes. Prime Alliance saves Patelco and the member from dealing with a cadre of forms. Members get approved right online. On the backside the loan links directly to the our processing system. Way cool."
Relocation Agreement Is Signed
Because Patelco is licensed to originate mortgage loans only in California, it has reached an agreement with corporate relocation specialist Lincoln Service Mortgage, Owensboro, Ky., to interface with Prime Alliance and handle online loan applications made by borrowers in other states. "Lincoln has their own Internet solution, but they were very excited about Prime Alliance, " said Oldag.
BECU, with over 275,000 members and more than $3-billion in assets, is the largest credit union in Washington and the third largest in the country. DEXMA, founded in 1995, delivers lending solutions to banks, mortgage companies and credit unions.
