Every day I spend on Earth is an opportunity to learn more about the people who live here and their cultures, and writing this blog is the ideal channel to garner information and insights on not just credit union mortgage lending but everything the world has to offer. For example, as I was scripting the outline for this post, I thought a great way to introduce it would be through a famous quotation.
I truly admire how the people of Earth use quotations to support their beliefs, ideals and work ethic. I believe that these quotations are both powerful in their messages and the highest sign of respect for the individuals who wrote or said them. Additionally, quotations can vary in the tone they convey, from extremely serious to downright hilarious. The quote I wish to use today to kick off my post is familiar to just about everyone and a literal proverb in your language:
“Variety is the spice of life.”
This adage originated in the late 18th century as a quote from the 1785 poem, The Task, by English poet William Cowper. It is meant to convey that diversity makes life more interesting and enjoyable. I would happen to agree with that, and from a credit union perspective, I think variety is at the core of how we do business and enables us to help a variety of members.
Over the past several weeks, I’ve referred to the marketing side of credit union mortgage lending and how your outreach, channels and materials need to resonate with different audiences. In other words, you need variety woven into your communication plans and programs if you are to successfully market to your wide variety of members and potential borrowers. For this post, I’m going to add a little spice to the equation (see what I did there?).
As a credit union mortgage lender, you need a good variety of Products and Services to successfully help more of your members with homeownership. If I’ve learned anything from my time in the home loan space here on Earth, it’s that every loan is unique, as is every member. No two are alike, meaning it is highly doubtful that only one or two mortgage products will be able to satisfy every scenario you encounter.
To help you and your credit union offer a variety of home loan products and services that make sense for your member base, let’s look at the mortgage spice rack and see what options we have:
A Variety of Loan Products: While conventional loans are the basis of a credit union’s mortgage lending repertoire, you probably want to consider government lending programs. FHA, VA and USDA loans offer a wide range of benefits that could assist more of your members and potential borrowers, including low to no down payments, flexible credit score requirements and higher debt to income ratios. Now that’s spicy!
Take Advantage of Loan Programs: In addition to and within many of these loan products are individual programs that could qualify your members for even more savings and benefits. For example, there are a plethora of first-time homebuyer programs ready to be utilized. Additionally, credit unions can offer the Fannie Mae HomeReady® program which offers a low down payment and expanded financing flexibility for today’s creditworthy low-income borrowers. The current program features a $2,500 loan-level price adjustment credit for qualified borrowers.* Click Here to see how your credit union can spice things up with this program.
Servicing the Life of the Loan: Take your variety of products and services beyond the closing table by providing the servicing for your member’s loan for as long as they keep it. Proving your credit union can and should be your member’s financial institution of choice means it’s important to build loyalty throughout the life of the loan. That loyalty can lead to future mortgages, making servicing an important addition to your mixture of spices.
With a greater variety of mortgage loan products and services, you’ll help a greater number (and variety) of members. It’s that simple and logical. Oh, and by the way, the full and correct line from Cowper’s poem is:
“Variety’s the very spice of life, that gives it all its flavor.”
I believe with the variety of mortgage products and services highlighted above, your credit union can deliver highly flavorful results to your members. Please share what your home loan spice rack contains – in the meantime, all this spice talk has made me hungry. Time to go polish off those leftover Moon Pies from the eclipse party and resist the urge to turn on anything from the Spice Girls.
HomeReady® is a trademark of Fannie Mae.
*Certain restrictions, timeframes and eligibility criteria must be met to qualify per Fannie Mae® Lender Letter (LL-2024-01) and myCUmortgage underwriting. Credit unions can contact myCUmortgage to learn more.