Credit Union Mortgage Leader Shares Strategies

Credit Union Magazine
January 11, 2008 | COMMENTS

Readers of The Oakland (Michigan) Press recently named $604-million-asset T&C Federal Credit Union in Bloomfield Hills, Michigan, as the "Best Mortgage Lender" in Oakland County. T&C Federal's Jerry McIlrath, vice president, and Jennifer Nepjuk, mortgage manager, answered the following questions about their successful mortgage strategies.

What's your overall approach to mortgage lending?

We use a needs-based approach to our mortgage lending. When we meet with members we won't recommend a product if it doesn't make sense for them.

They appreciate our honesty. They trust their credit union, and that's why they come to us when they need mortgage financing. Our goal is to provide our members with the best service possible.

Why were you named Oakland County 's best mortgage lender?

T&C's No. 1 priority is excellent member service. That's why members remember us after they go through the mortgage process.

What's your biggest mortgage lending challenge?

The economy in Michigan is the biggest challenge we're dealing with currently. Some members have lost their jobs, and those who haven't aren't getting the overtime they were used to.

Many people were living beyond their means so we're doing a lot of debt consolidating and extending mortgages to longer terms. The market is slow, and the perception of consumers regarding Michigan 's economy is playing a significant negative role. It's a buyer's market.

What's one of your successful mortgage lending efforts?

Our most successful effort has been our staff referrals. Our front-line staff see so many members, and they're the best way to get the word out to our members about our mortgage program.

How has your approach to mortgage lending changed over the years?

Referrals. Our culture is to seek out member needs and fit them with the best financial products. Our front-line employees have become our most effective marketing tool for mortgage referral business in the past two years.

How have members' mortgage needs changed over the years?

Members now don't plan on putting down any money when buying homes. We need to have products available to address the need for 100% financing, which we have in place.

What common mistakes do mortgage lenders make?

Most mortgage lenders don't have ongoing relationships with their "customers" so they offer the "flavor of the month" product, which in the long run may not be in the consumer's best interests.

We look out for members' best interests and avoid risky products that don't make sense for many of our members, like interest-only loans or hybrid adjustable-rate mortgages.

What advice do you offer other credit unions?

Product counseling. Investing time with your member pays dividends.

This story first appeared at www.creditunionmagazine.com and is reprinted with permission.