TUKWILA, Wash. - While others in the mortgage business are suffering, 2007 proved to be a banner year for the mortgage CUSO Prime Alliance Solutions Inc., and its success is continuing on into 2008.
Though mortgage production nationally was down 15% in 2007, Prime Alliance is reporting an increase of 20% in mortgage transactions during 2007 over 2006.
Keith Nolan, EVP, sales and marketing of Prime Alliance, attributes the success to two reasons.
“Similar to when the stock market crashed in early 2000, consumers are looking for reliability, trustworthiness, consistency and dependability when it comes to mortgages,” he said. “While the average borrower wants a good deal, they also want the right deal that will put them in a home and just as importantly, keep them in a home. As a whole, credit unions didn’t get involved in the subprime debacle. As a result, they have plenty of capital and sound financials.”
It is for this reason that Prime Alliance looks at current market conditions as the glass being “half-full,” Nolan explained.
“We firmly believe that credit unions have been presented and are starting to take advantage of an amazing opportunity to take a permanent seat at this country’s housing finance table and be considered mainstream mortgage lenders,” Nolan said.
The second reason for Prime Alliance’s success, Nolan said, is that while the market as a whole experienced a slow down after the initial refinance boom, many of their credit unions improved their operations and added new solutions sets to prepare for the volume they are currently experiencing.
Current Market Is Actually Helping
In some ways, the current market is actually helping Prime Alliance, Nolan admitted.
“While we are now benefiting from more refinance transactions, our purchase money lending remains very strong.” Nolan said. “Current mortgage market and industry conditions provide us with a unique window for Realtors, brokers and consumers to recognize credit unions as significant trusted and reliable mortgage lenders.”
Nolan isn’t at all worried about the future, either. In fact, he expects things to stay the same for Prime Alliance.
“We think current volume will remain strong through the first quarter and most likely through the beginning of summer,” he noted. “Rates are excellent and credit unions are doing a much better job at letting their members know that the best place to get a mortgage is at their credit union.”
Re-fi Boom Will Dry Up
However, at some point, Nolan does expect the current re-fi boom to dry up.
“And we will be back to a more traditional purchase money lending marketing,” he said. “The good news is that Prime Alliance credit unions will be ready and waiting.”
So what’s the downside?
“The economy remains the big wild card,” Nolan answered. “Nobody can predict for sure what will happen or how consumers will react. It is a buyers’ market and we have the solutions and the tools to help credit unions take advantage of this opportunity.”
Still, many are worried of current market conditions, Nolan said.
“Fortunately for Prime Alliance, our success isn’t just determined by one product line,” he explained. “In addition to our industry-leading technology platforms, our family of real estate solutions–Strategic Mortgage Solutions University, SMS Consulting, Prime Alliance Real Estate Services, Prime Alliance Loan Servicing, Prime Possibilities, Prime Alliance Closing Services–diversifies our offerings as well as our ability to weather any storm.”
MORE
Read more about how to gather and use member feedback at cujournal.com and searching the following bolded terms in the archive:
Prime Alliance Reports Mortgage Surge
What Subprime Mortgage Meltdown Means to CUs: No Retreat: CUs Positioned To Help Members–And Selves
Drowning Sub-Prime Borrowers Need CUs To Come To Rescue
For info on this story:
* www.primealliancesolutions.com
