Tech Allows Smaller CU To Become Aggressive Mortgage Competitor

LISBON, Maine - Just three months ago, Lisbon Community FCU offered a scant array of mortgage products. The small CU's hands were tied from selling mortgage loans to the secondary market and accepting simplified applications from members over the Internet. Pre-approvals weren't possible and mortgage rates weren't attractive. It took an expert to pick apart its rate structures.

In sum, the $60-million CU just couldn't compete, said Lorraine Turcotte, assistant manager at Lisbon Community.

That's all been changed by an online mortgage origination platform provided by MortgageClick, according to Turcotte. MortgageClick includes an online mortgage technology developed in conjunction with the CUSO Prime Alliance Solutions, Inc., the Fannie Mae Desktop Underwriter for automated loan approval and the Freddie Mac Loan Prospector for automated underwriting.

"We can advertise with brokers in our area that we have competitive rates, a wide variety of products, a streamlined application and pre-approvals," she said. "And with MortgageClick and Desktop Underwriter we don't need a loan officer's expertise. We're now very competitive with area mortgage companies."

Lisbon Community plans to grow loan volume by at least 15% this year, without adding staff. "I think MortgageClick will help us do that," she said.

"MortgageClick helps credit unions give members better access to loans," added Mary Kay Chalmers, director of mortgage lending at the Colorado Credit Union Association, which is targeting the platform at credit unions from $50-million to $100-million in assets and has eight affiliated credit unions using MortgageClick.

By giving credit union lenders exposure on the Internet, "MortgageClick has contributed to the fact that our credit unions are doing better this year than they were last year," she said.

The front line at Fairfield County FCU in Bridgeport, Conn., pitches in to the mortgage program by taking applications, said Marcel Desjardins, loan manager at the $32-million CU.

"Not only can members submit the application online, but our member service representatives can sit at a computer with a member and put the application through," Desjardins said. "That's really great for us."

"Our former system was cumbersome," he continued. "You had to get the IT person when you wanted to update the application and platform. And you had to go through multiple screens before you could submit the application to Desktop Underwriter. "With MortgageClick, it's just 10 clicks and you're there," said Desjardins.

In fact, the credit union staff may appreciate MortgageClick's qualities even more than members, Chalmers said.

"It used to take us days to train credit unions on rates and rate structure," she explained. "The MortgageClick application is intuitive in regards to rate structures. More importantly, even novice mortgage lenders enjoy the ability to print out a good faith estimate of closing costs. They're less afraid."

MortgageClick specializes in bringing credit unions up to speed on mortgage lending, said Stan Kutzko, SVP at the Woburn, Mass.-based firm.

"Our background is in mortgage banking, but just handing that over to a credit union and expecting them to be successful is probably unrealistic," said Kutzko. "We approach each credit union with a fresh slate to see what the challenges are."

Like Lisbon Community, Fairfield County FCU now offers a wider range of loan products that it can sell to the secondary market, such as 30-year, interest-only and 100% financing mortgages. And MortgageClick can issue a pre-approval letter in 30 seconds for free, helping the CU keep up with an increased demand for pre-approvals, Desjardins said.

Both Lisbon Community and the Colorado League started using MortgageClick as part of the current 'test drive' promotion that allows CUs to try the platform for free for 90 days.

FOR MORE RESOURCES

Read more about lending technology at cujournal.com and search the following bolded terms in the archive:

Ability To Squeeze Turnaround Time, Cut Costs Helping CUs Boost Lending, for a story on how several credit unions are using lending technology to boost the bottom line.

Automation Helps CU, for a story on how an automated solution helped double home equity loan volume in one year at First American CU.

FOR MORE INFO ON THIS STORY

* Fairfield County FCU, www.fairfieldcountyfcu.org

* Lisbon Community CU, www.lisboncu.org

* Colorado Credit Union League, www.colocu.com

* MortgageClick, www.mortgageclick.biz