Lending

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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Great article! Unfortunately, most employees don’t feel valued or appreciated by their supervisors or employers. In fact, research has shown that the predominant reason team members quit their jobs is because they don’t feel valued. This is in spite of the fact that employee recognition programs have proliferated in the workplace – over 90% of all organizations in the U.S. has some form of employee recognition activities in place. But most employee recognition programs are viewed with skepticism and cynicism – because they aren’t viewed as being genuine in their communication of appreciation. Getting the “employee of the month” award, receiving a certificate of recognition, or a “Way to go, team!” email just don’t get the job done. How do you communicate authentic appreciation? We have found people have different ways that they want to be shown appreciation, and if you don’t communicate in the language of appreciation important to them, you essentially “miss the mark”. Additionally, employees need to receive recognition more than once a year at their performance review. Otherwise, they view the praise as “going through the motions”. A third component of authentic appreciation is that the communication has to be about them personally – not the department, not their group, but something they did. Finally, they have to believe that you mean what you say. How you treat them has to match the words you use. If you are not sure how your team members want to be shown appreciation, the Motivating By Appreciation Inventory (www.appreciationatwork.com/assess) will identify the language of appreciation and specific actions preferred by each employee. You then can create a group profile for your team, so everyone knows how to encourage one another. Remember, employees want to know that they are valued for what they contribute to the success of the organization. And communicating authentic appreciation in the ways they desire it can make the difference between keeping your quality team members or having a negative work environment that everyone wants to leave. Paul White, Ph.D., is the co-author of The 5 Languages of Appreciation in the Workplace with Dr. Gary Chapman.

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