In the face of impending volatility, like we see on the horizon now, organizations often react by tightening spending and doubling down on the revenue-driving tactics that have worked for them previously. Credit unions are no exception. But the market ahead is affected by an unprecedented mix of factors, and the strategies you’ve relied on to keep mortgage programs profitable in past economic downturns may not be enough to keep you ahead of the competition this time.
If you want your credit union to thrive — not just survive — the forthcoming volatility, it’s important you take steps to prepare for the market ahead before you begin seeing its effects. In late 2022 and beyond, that preparation will mean focusing on and investing in the strengths of the market; namely, strong purchase volume.
Even as other volumes slow, there is always opportunity in the purchase market. While credit unions historically struggle to remain top of mind for home loans, they have an advantage: unique insight into the behavior of their members that can position them to take advantage of purchase volume.
Harnessing, analyzing and acting on this insight, however, is difficult — if not impossible — to do independently. It takes a combination of agility, experience and technology to best harness the potential in your purchase pipeline. One way to do so is by partnering with a credit union service organization (CUSO) like TruHome.
Three ways to support your mortgage pipeline in a volatile market by partnering with a CUSO:
- Facilitate proactive marketing. Our technology allows you a window into your members’ behavior that helps you identify those who may be interested in buying a home before they ever apply for a loan. TruHome uses data science and unique infrastructure of custom-developed integrated technologies to create a model audience quickly and securely within your member base. Being able to focus on this segmented audience allows you to target them with precise, proactive marketing campaigns tailored to their needs.
- Launch a triggers program. Rather than relying solely on predictive behaviors to target potential homebuyers, TruHome can help you augment a proactive marketing campaign by identifying members who are already shopping for a loan. Get instant alerts when your members begin looking for a mortgage loan, so you can create the opportunity to educate them about your credit union’s mortgage lending program.
- Take advantage of a 100% variable cost structure. Recently, volumes have decreased in the marketplace by upwards of 50% … and your staffing configurations may have followed suit. Rather than keeping fixed costs on your staff in an era of rapidly declining volume, a partnership with a CUSO for dedicated expertise to your mortgage program lets you continue your mortgage program with a 100% variable cost structure.
If your credit union has always managed its mortgage program in-house, we understand that partnering with a third-party partnership can feel daunting, especially heading into challenging economic times. We often recommend beginning a CUSO partnership in a smaller capacity and iterating as you get comfortable and see the benefits of working together. For example, you could consider having your full-time staff focus on home equity and other consumer lending and let your partner handle members pursuing a first mortgage. At TruHome, we’ve designed our partnership program to meet your unique needs, help you thrive in a downturn, and build your mortgage pipeline regardless of what’s happening in the market.
Contact us today to learn more about the benefits of becoming a TruHome partner.