POUGHKEEPSIE, N.Y.-It's a common refrain: credit unions need to build relationships with Realtors to improve their purchase mortgage business. The $186-million TEG FCU here has taken action.
Stephanie Molinelli, director of marketing, said although TEG FCU's mortgage program is only a year old, it is far from taking baby steps. The credit union recently hosted nearly 400 real estate professionals from Dutchess, Orange and Ulster counties at a conference in nearby Fishkill. Attendees were drawn in part by an appearance by real estate mogul Barbara Corcoran, known for being on ABC's "Shark Tank."
Corcoran was the keynote speaker for TEG FCU's "Building Connections" event, which also featured workshops designed to help real estate professionals build their brands, businesses and financial expertise.
According to Molinelli, the conference is just one part of TEG's overall strategy to take advantage of a burgeoning real estate market in the three-county area it serves.
'Want To Be A Player'
"This is the first time we have hosted a conference," she said. "Our mortgage department is relatively new-we started building it a year ago-but we have everything in place. We wanted to show Realtors we are there to support them. We want to be a player in the mortgage market in Dutchess, Orange and Ulster counties, and we wanted to give Realtors some information and inspiration that they can use in the peak selling season. Spring is a big season for home sales. The speaker caught their attention, and we wanted them to know about our services."
TEG FCU sees mortgages as a "great way" of growing the credit union, Molinelli continued. She said since every CU's goal is loan growth, more credit unions should be looking at real estate lending.
"If we pull them in with a mortgage it is a great way of building a relationship, and then we can look into getting loans from other lenders," she said. "The goal is to become their primary financial institution. If they are moving they need to order new checks anyway, so what better time to change?"
Rapid Growth
TEG's mortgage department has grown "substantially" in just 12 months, Molinelli told Credit Union Journal. After starting with one person, it has grown to nine.
"People have responded very well," she said. "Our outreach to the Realtor community has helped. They like it, and they are the link to the consumer. They know the people who are looking to buy homes, and those are the people we need to be talking to, as well."
Part of TEG's attraction to Realtors is its commitment to speed. Molinelli said the CU has one of the fastest turnaround times in its service area at just 30 days. TEG does underwriting and processing in-house.
"We made a commitment to the Realtors to keep them in the loop," she said. "We want to be a partner with the Realtors, not just a necessary evil to get them to their end-goal, which is the sale."
The mortgage department's growth is one part of overall lending success. In 2012 it had 15.61% loan growth and 4.88% share growth. The mortgage department funded 186 loans totaling $31.4 million last year.
"That was not a bad first year, especially given how small the department was most of the time," Molinelli assessed. "In 2013 we are looking to do $57 million in mortgages. Our focus is on the purchase market because rates have been low for some time now. The pool of those looking to refi is much smaller, and the local real estate market is doing well, so it is a natural time to get into the business."
