By Chris Arenz
More than the outdoor temperatures are predicted to rise as we get into late summer for America’s credit unions. The summer months present tremendous opportunity for mortgage lending, refinancing and payment products that protect borrowers’ investments in their homes.
According to the U.S. Postal Service, more than 45-million Americans and one-in-six U.S. families move from one home to another every year. More people and families make those moves in the summer months than any other time of the year, according to the U.S. Census Bureau. And forecasts suggest that, this summer, many local real estate markets may see more demand than supply in terms of homes on the market, according to the Home Buying Institute.
Credit unions are uniquely positioned to seize the opportunities associated with moving season, thanks to growth in three key areas: savings, loan portfolios and memberships. CUNA Mutual Group’s monthly Trends Report for May shows that credit union savings balances rose to over $1 trillion, collectively, a first in credit union history. In the previous 12 months, credit union loan portfolios had grown by more than 10% (the fastest pace since December 2005)4. And, memberships had grown by nearly half a million members.
While the season presents strong lending opportunities for credit unions, member interest in protecting mortgage investments is also likely to be high for many. Today, nearly 70% of Americans say they’re not prepared for financial emergencies according to Pew Charitable Trusts. Credit unions can add value to the lending experience by offering mortgage protection products and other options that support members’ financial security.
Tips For Credit Unions
So, as the summer heats up with opportunity, we suggest that credit unions consider the following three tips for making the most of moving season:
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Engage current and potential mortgage lending customers with new opportunities.
Seize the opportunity and seasonal interest with programming like home-buying seminars, working with realtors and launching advertising and social media content that connects the dots for current and potential lending customers. - Supplement your mortgage business with products that add value for members and support non-interest income for your business.
Products like mortgage payment protection, homeowners insurance and others can enhance the peace of mind you provide to members while mitigating the risk to your lending business. Offering auto refinancing or credit card balance transfers add value by reducing member interest expenses. Cross-sell these complementary products during the mortgage origination process to enhance the benefits on both sides of the transaction
Today’s consumers are navigating a flood of content between social media, outdoor advertising, direct mail, email and mobile marketing. Keep your message – and your user experience – simple to create a meaningful impact for members and your mortgage events.
How are you leveraging moving season this year?
Chris Arenz is the director of mortgage payment protection for CUNA Mutual Group. He can be reached at Christopher.Arenz@cunamutual.com or 608.665.8921. For more information on mortgage payment protection and other products, go to cunamutual.com/mpp.