Three Mortgage Challenges CUs Will Face in 2010

Credit Union Magazine
April 1, 2010 | COMMENTS

Credit union mortgage lenders will face special challenges during 2010—challenges that only technology can help them resolve. These challenges include:

1. Mortgage pricing complexity
With today's confusing loan-level variances, loan pricing is more complicated than ever. And with credit-score-based adjustments, it's almost impossible to work from paper rate sheets.

In 2010, credit unions need automated pricing technology to accelerate and streamline the mortgage process and keep pace with member demand.

2. Regulatory compliance
Last July, significant Regulation Z (Truth in Lending) changes took effect. This year, a new set of Real Estate Settlement Procedures Act rules became law, necessitating changes to the good faith estimate. And further changes are expected.

This year, credit unions need to automate their regulatory compliance function to ensure they avoid the stiff penalties that can result from non-compliance.

3. Consistent member service
Members once completed mortgage applications by sitting down with a loan officer. But it's no longer a one-channel world. Now, members want to apply online, by phone, or in person—and they're demanding immediate, consistent service whichever channel they select.

In 2010, credit unions need to integrate their mortgage points-of-sale to ensure that every member enjoys a fast and efficient mortgage-application experience.

The author, Scott Happ is president/CEO of Mequon, Wis.-based Mortgagebot LLC, a provider of online mortgage origination technology solutions since 1997. Contact him at 262-292-0888. Reprinted with permission from Credit Union Magazine Online.