EAST WINDSOR, Conn.-The next few months will see significant changes in the mortgage loan market and those changes will impact the credit unions that write those loans, according to Jeff Chesky.

Chesky, chairman and CEO of Insuritas, a provider of outsourced insurance agencies, told Credit Union Journal he anticipates the start of a "major restructuring" of mortgage lending in America this summer.

"The refinance boom has run its course, and purchase mortgage activity is picking up pace within the overall economic recovery," he assessed. "We believe that purchase mortgages will exceed refinance production in late 2013. Credit unions that fail to reposition their mortgage operations to attack this purchase wave that is coming will see a major collapse in fee income from their mortgage operations."

Since the collapse of the last purchase mortgage boom, major new competitors have entered the mortgage lending space, Chesky noted, pointing to providers such as Quicken Loans that are fast, efficient, transparent and online. "They offer sophisticated call center capacity, online chat, click to call and online video chat to drive customer engagement. Complicating this shift in distribution is the role Realtors and brokers play in directing the purchase mortgage business."

 

Information Parity

The CUs that win in this race will offer online mortgage originations, online member engagement right through loan processing and comprehensive support through to funding, Chesky continued. He said support includes bundling appraisal, insurance and closing services in a one-stop shopping environment.

"The market now offers information parity; it is no longer buyer beware," he said. "Effective credit union loan platforms will use clarity and insights to engage an already highly informed buyer."

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