SCOTTSDALE, Ariz.–CU Realty Services reported that it continues to see the need for turnkey real estate solutions in the credit union community, as evidenced by its growing client list. The real estate services CUSO implemented 19 new credit unions in 2013 and an additional 19 in 2014, including IBM Southeast Federal Credit Union in Boca Raton, Fla.; Patelco Credit Union in Pleasanton, Calif., and Wings Financial Credit Union in Apple Valley, Minn.
“Competition is increasing for home buyers’ mindshare, and credit unions are finding it important to get in front of home-buying members sooner if they want to earn their mortgage business,” said Mike Corn, President/CEO of CU Realty Services. “The best way to do that is to expand beyond the role of just a lender and provide members with the support they need to make informed decisions before they begin the search process.”
CU Realty said its HomeAdvantage program enables credit unions to make that shift. The registration-based program empowers credit unions with the tools and resources they need to attract and engage home buying members early, and close more loans. Features include online property listings, a network of experienced Realtors, and a rebate at closing.
“The goal is to earn that buyer’s First Point of Contact,” said Corn. “Whoever gets to the buyer first, earns a very influential role in the choices that buyer makes – especially in lending. And our program helps credit unions get there.”
The concept is paying off, the company said. According to Barry Stricklin, SVP of Lending at Tower Federal Credit Union, “When a member uses HomeAdvantage to purchase a home, we capture that purchase mortgage transaction 70 percent of the time. I don't have any other channels that even come close to that success rate.”
Credit unions are not the only beneficiary of HomeAdvantage. When members use a preferred Realtor in the HomeAdvantage network to buy or sell their homes, they earn a rebate that can be applied to closing costs or taken as cash. The average rebate is $1,500 per transaction.
In 2014, CU Realty reported it put a collective $3.5 million back in members’ pockets via this rebate representing a 26% increase over rebates given in 2013. “