GSE reform, bye-bye big banks, hello fintech companies
Tim Mislansky serves both as SVP and chief lending officer for $3.4 billion Wright-Patt Credit Union, and president of the myCUmortgage CUSO, both based in Beavercreek, Ohio. He offered CUs three points they should be thinking about due to their potential to greatly affect the industry.
“One, we need to keep our eye on GSE reform with the new administration. It seems something might happen, and credit unions need to be watching closely because we need a level playing field,” he said. “If the mortgage resale market becomes dominated by the big banks, that will impact our ability to make mortgages.”
Mislansky’s second point: Mortgage lending competitors for CUs are changing from the five big banks to mortgage brokers and mortgage bankers. “The big banks are getting so much scrutiny, the mortgage game is shifting to non-depository companies,” he assessed.
Third, fintech companies are evolving and changing what they do, which he said has major implications. Quicken, for example, is claiming it has funded $5 billion in mortgages. “What does that mean to credit unions if people are turning more to online or mobile mortgage applications? It is changing how mortgage lending is done with speed and a focus on user experience,” he said.
Fintech companies have comparable Net Promoter Scores to credit unions because they focus on convenience and the user experience similar to the way credit unions do, Mislansky noted. “How does fintech change the way credit unions do mortgage lending? It is a threat, and it is an opportunity to partner with some of these.”