Five Reasons Credit Unions Should Join a CUSO
We’re all in this together.
In a banking world dominated by competitive giants, credit unions
stand apart due to their collaborative culture. Credit Union Service
Organizations, or CUSOs, are a perfect example: an organization that
offers credit unions the benefits and capabilities of a power player
without losing the close-to-the-community approach that makes them so
popular with consumers.
A CUSO can offer real advantages to credit unions offering mortgages. Here are five examples:
Full Service, Close to Home
Most credit unions can handle mortgage loan originations but may lack
the expertise to perform processing, underwriting and closing as well.
Servicing loans in-house often requires more staff and budget than a
single credit union can support. In addition, mortgage loan servicing is
governed by a complex network of regulations that are ever-changing and
require constant monitoring.
With the support of a CUSO, a credit union can operate as a
one-stop-shop, offering members fast and efficient service from the
financial institution they prefer. By outsourcing the servicing of the
mortgage to the CUSO, credit unions can reduce their operating expenses
and relieve the administrative burden on staff. With this capability at
hand, credit unions can handle more mortgage business and strengthen
relationships with their members. This way, credit unions can offer the
same high-quality service on home loans that they are known for.
Experts on Call
Having access to experienced professionals at a mortgage CUSO
provides credit unions with flexibility for the staffing shortages,
origination volume surges, or if there is a need for a specialized
mortgage loan product. With the CUSO as your back-office experts, your
staff can focus on the customer care that ensures the all-important
member satisfaction and retention.
An Engine of Innovation
A credit union looking to expand its services can turn to the CUSO as
a source of expertise and collaboration partners. A group of credit
unions may join forces to research market opportunities, develop
products, and share the expense of specialized talent. Access to such a
well of expertise, and the collective innovation of the membership,
ensures credit unions can offer a sophisticated array of products to
remain competitive without bearing the entire development burden.
In the competitive financial marketplace, credit unions must meet
member expectations for fintech services and capabilities such as
mortgage lending platforms and mortgage loan application processes to
compete with goliaths like Rocket Mortgage. This is an especially urgent
strategy for credit unions seeking to attract members from younger
generations aging into their prime home-buying years.
Rather than each credit union shouldering all the cost and time investment of technology development, a CUSO can partner with technology companies. The resulting fintech solutions are made available to credit unions at a lower cost than via individual development, allowing for credit unions to compete in a ever-changing technology landscape.
Perhaps the most compelling reason for credit unions to explore a
CUSO that offers mortgage lending services is the impact it can make in
growth. A 2018 study for creditunions.com found that, over a five-year
period, credit unions partnered with CUSOs outperformed those without.
If you’d like to learn more about Mortgage Markets CUSO and the
advantages it can offer to your credit union, get in touch by emailing
Michael Ferraro at firstname.lastname@example.org or by filling the form below.
We want to work with you!
Mortgage Markets CUSO operates for the benefit of credit unions and credit union members. Interested in learning more about becoming a Mortgage Markets CUSO partner?