Is your Loan Production Pipeline Shrinking?

March 29, 2011 | By | Reply More

 Since today is actually ACUMA’s 15th birthday I would have never guessed when we started I would eventually become a Blog writer…

I spend just about every day worrying about credit union loan production. For nearly 40 years this has been my life, Credit Unions and Mortgage Loans. I have served as an executive, a Loan Officer and now a Trade Association leader. I speak with mortgage professional people each and every day. Most of the Credit Union folks I have been speaking with lately are concerned about their loan production. This is a far cry from what happened in Q1 of 2010 one person told me. I also speak with people on the other side of the table working with CUs and they ask why more people aren’t flocking to CUs for their loan needs and so the discussion continues. I wish I had one sure fire magic bullet to fix this situation but I do not. I can only offer the assistance of a great group of people who all care that we all reach a very positive outcome to this story.

So let me begin with a recent conversation concerning the issue of “short sale” lending opportunities. Statistics tell us about 1/3 of today’s market production comes from short sales or distressed properties. In most cases this transaction includes a professional REALTOR. So now we have the prospective borrower/buyer, the REALTOR, the holder of the loan and the NEW lender. As I understand it the timetable for each of these parties is slightly out of sync. I suspect some of you may have found yourself in one or more of these positions at one time or another in the recent history. So here is my question for our Credit Union members, “How are you equipped to offer solutions and dealing with inquiries like these from members and prospective members”. If you do NOT have a solution you are obviously not going to be able to compete in the marketplace for this portion of the business. Let us help identify and create strategies and solutions for you. I really believe we cannot simply ignore this portion of the market. Our members and consumers in your communities need help. Statistics tell us another 1/3 of today’s market are All-CASH transactions. This means no loans and no lenders. So finally, if you are putting all of your eggs in the rest of the market opportunity along with EVERY other lender on the planet, how confident are you that you will reach your goals?

No matter what decision you reach if you are planning to compete for loans in the marketplace you will need the very best people doing their very best work each and every. This starts before the originator leaves the office. It starts with recruiting the right people, having an appropriate and competitive compensation package, performing all of the compliance and training and possessing the technology and back office staff to deliver the very best products and services that meet the needs of your members. One size does NOT fit all. The business has reached a new dynamic and we simply have to raise the bar for ourselves! I don’t think your Credit Union’s BOTTOM LINE will make it without you!

If you lack knowledge, confidence, or any the resources I have mentioned or need more help please stay tuned because ACUMA is here to tackle all of these issues and more. I would appreciate some comments to what you would like to see here. You can send them to me off line but let’s do engage this is important to me and all of us!

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