LAS VEGAS-Hosting home buying seminars has become a valuable tool for helping one capture mortgages.
But, said Scott Norris, EVP of residential real estate lending for $5.2-billion San Diego County CU, the entire credit union must be behind the seminar for it to work.
"The most important part is to convert members attending the home buying seminars to loans at the credit union," he told ACUMA's annual meeting.
There are many versions of home buying seminars available, from those offered by individual Realtors to community groups. To stand out in this crowd, the process should begin with an analysis of what will make the CU successful, followed by ongoing marketing, he said. "The more members hear about the next seminar, the more the credit union benefits."
Something To Sell
Another important element is having "something to sell," Norris continued, especially values that Realtors and loan brokers cannot match at their seminars. Options include niche loan programs, reduced interest rates and/or fees, and extended rate locks for those who get pre-approved at the seminar. Whatever the offer is, present it to people who attend in the form of a non-transferable coupon. Of course, the CU should establish prudent underwriting guidelines and have a program limit before starting, he reminded.
Norris said has attended seminars that dragged on for six hours and left participants with glazed eyes. He recommended scheduling for approximately three hours to balance presentation of content and allowing attention spans to take in the information. Topics may include the nuts and bolts of the home-buying process, how to find a Realtor, how property appraisals work, typical fees and costs that will be paid and more, with at least 30 minutes for Q&A.
"The No. 1 question is always, 'Why should I buy now?' " he said. "This was true in 2005 when the market was overpriced and it is true now when values are down from the large number of foreclosures."
There are several logistical considerations to keep in mind, starting with the need for "interesting and invigorating" speakers. That's speakers, plural, as "one talking head for three hours can be too much to take." Other tips: Saturday mornings are best to maximize attendance, a number of local Realtors should be invited, and plenty of staff needs to be present so the lines to check in do not become too long.
"The seminar is only as strong as the weakest link, because wherever it breaks down is what members will grouse about."
RSVP Time
SDCCU typically sends out e-mail blasts six to eight weeks in advance of seminars (Norris said 90 days is too long, as people RSVP and then forget). The e-mail should have a link to a Web page with information, and then a second link to fill out an RSVP. When it comes to booking space, providing materials and ordering refreshments, Norris has found normal fallout is 25% to 30% from the number of people who register.
A recent SDCCU home buying seminar drew 155 of the 186 people who RSVP'd. At that meeting, 22 were pre-approved for a mortgage and 15 ended up closing a loan.
One final tip from Norris: Always give members a survey to probe for topics they felt were not addressed.
