LAS VEGAS-While some credit unions have struggled to make connections with Realtors, one CU established a relationship that worked so well, it purchased the realty company and brought Realtor Ed Birdsong in house.
Birdsong said management at $1.6-billion TDECU (formerly known as Texas Dow Employees CU) made the decision a few years ago to upgrade real estate lending to be one of its core products. He began sending more and more business to the Lake Jackson, Texas-based credit union, and it eventually became his "best place."
"Credit unions need to be the best place," he told attendees of ACUMA's recent Annual Conference here. "Credit unions and Realtors have so much in common. As a Realtor we want the best service for our clients and want someone to put the clients' interests first, and credit unions put their members first."
Birdsong now works closely with Loretta Williams, the VP of mortgage lending for TDECU. Williams admitted that in her former career as a Realtor she sent little business to credit unions due to quality and service problems. Not surprisingly, when Williams joined TDECU, she had to hear from Realtors what a "horrible" job TDECU was doing with real estate lending.
"It was taking us six to eight weeks to close a loan," she recalled. "I made it my goal to improve. If credit unions can partner with Realtors, they can get repeat business and referrals, but they have to do a good job."
According to Birdsong, the top 8% -10% of Realtors sell 80% to 90% of the product.
"The best thing for a credit union to do is build a one-on-one relationship with one of these top agents. Tell those Realtors what a credit union is and does, because most people in the United States don't realize members own a credit union," he advised. "Realtors want a loan product mix, with a variety of options from small to jumbo at a competitive rate."
Once CUs develop strong relationships, he added, the interest rate does not have to beat all of the competition. "Loyalty and trust can overcome an eighth of a point," he asserted.
Williams noted communication and fast response times appeal to Realtors who want to close deals quickly. She said TDECU set up a special telephone number and e-mail address-referred to as the "Golden Ticket"-that is given to Realtors with whom it has partnered. Those phone calls and e-mails are forwarded directly to all four people in the mortgage lending group to ensure prompt handling.
Home Buying Seminars
Both Williams and Birdsong recommended CUs host home buying seminars for both members and non-members. They said these are opportunities to demonstrate the difference between the fees credit unions charge versus those of banks. Seminars also are an opportunity to pre-qualify members for loans. "In the case of non-qualifiers, set up a plan to improve their credit over six months, then try again to qualify them," Williams advised.
Birdsong said seminars should be heavily advertised in CU newsletters, via e-mails and with notices in the local newspaper. "Tell people how the home buying process works from beginning to end. Talk from a lender's perspective and from a Realtor's perspective.
"Questions and answers at the end are very important, so leave plenty of time," he added.
