GREENSBORO, N.C.-Hang on to the servicing.
That is one of the bottom line drivers suggested by Shannon VanSickler, VP-credit union channel for United Guaranty Corporation.
"Credit unions can generate 'other income' by selling their mortgage loans, but retaining the servicing in a low-rate environment can extend the duration of their servicing rights," reminded VanSickler.
Credit unions also should offer first-time homebuyer products, VanSickler continued, noting these not only drive loyalty but will bring in a younger demographic.
If management and/or the board decide mortgage lending is not an appropriate fit for their credit union today, options still exist, VanSickler said. She encouraged CUs to participate with other credit unions in the purchase of mortgage, consumer or member business loans. She said the best advice for participations is for a credit union to know its partners, the collateral, the credit quality at origination and ongoing, and to make certain to keep the credit union out of risky waters.
"Finding the right blend of investment opportunities can challenge even the most astute credit union CFO," she said. "Risk is being scrutinized like never before, and the complexity of the credit union balance sheet continues to increase. Therefore, it is incumbent upon the management team to deliver an investment strategy that takes into consideration risk tolerance and profitability goals-one that makes sense for the credit union and delivers benefit to the members."
