CUs Navigate the Mortgage Reg Maze

Impending regulations are ‘more fast-track than ever before.’

January 04, 2012
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What vendors offer

Pisapia says QR Lending can help take the regulatory and compliance burden off credit unions’ shoulders. It also offers dedicated personal loan coordinators credit union clients can call for assistance, streamlining processes which results in faster underwriting turnaround times.

CU Members Mortgage has four levels of residential first mortgage offerings, divided into two channels:

1. Direct lending. The credit union has minimal involvement in the origination process. “This channel is for credit unions that want to earn fee income but don’t have the expertise, funds, or desire to support a mortgage department,” Jones explains. “In this case, we do most of the work as an extension of their team, including tending to regulatory and compliance issues.

“We have several resources that help the credit union brand the product offering to their members,” he continues, “including a state-of-the-art home loan application website made specifically for them.”

2. Correspondent division. The credit union does most of the work during the origination process and CU Members Mortgage typically underwrites, assists with closing, and provides servicing.

“We’ve been serving credit unions for 30 years,” Jones says. “That gives us a long history to help guide credit unions as to what will work best for them, and to educate them to stay in compliance.”

Fairly new—but already making a splash for its quick processing time—is United Wholesale Mortgage, which started reaching out to credit union clients early in 2011.

“We’re not the norm—we can process a loan, from submission to [funding], in less than 10 days,” says Kimberly Ogles, director of credit union relations. “The credit union can bring everything to the table at one time. The borrower only needs to come in once and the deal is done.”

That quickness, she says, is something credit unions can tout as an example of their dedication to member service.

The company also offers Easy Qualifier, an application that allows credit unions to input members’ data and generate mortgage options.

“The credit union can then decide which option it wants to offer,” Ogles says. “We’re a wholesale lender that retains servicing for credit unions on all conventional or Federal Housing Administration mortgages. Our clients’ members don’t have to know we’re involved—we operate as far behind the scenes as the credit union wants.”

However, despite the company’s low profile, Ogles says it runs checks and verifications as though each loan was one of its own. “We make sure everything about the loan is compliant.”

One popular product is a low-rate conventional loan with built-in mortgage insurance protection, she adds. It covers most of the loan without the borrower actually having to take out an insurance policy.

“For some, the savings can be up to several hundred dollars per month,” Ogles says. “These loans make up 50% of what we’re doing now.”

Next: Guarded optimism for 2012

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