Five Reasons Credit Unions Should Join a CUSO

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.   

Upgrade Together

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.  

Accelerated Growth

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 mferraro@mortgagemarketscuso.com 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?