Reducing turnaround times for applications should be priority No. 1, say some brokers, appealing to monolines as competition moves beyond rate.
Video transcript below:
Jemima Codrington, Mortgage Broker News
Jemima Codrington: New federal guidelines are shrinking HELOCS at the banks, but growing broker interest in credit unions. Hi, I’m Jemima Codrington and welcome to the Big Story on Mortgage Broker News.
With the interest in high LTVs of credit unions, brokers are also calling for some improvement.
James Laird, True North
James Laird: When you use a credit union, you have to understand that their technology is not upto speed with the other lenders that you have available. So what this means is, when you submit an approval they usually have to actually type it into their own system, this leads to much longer service times and this includes when you get your approval back, it takes much longer to when the documents are reviewed, to when the deal is actually instructed to the lawyer.
Enza Venuto, Centum
Enza Venuto: When using credit unions I actually see no stumbling blocks, because of the fact is that you have already attached a relationship to a credit union and you’ve known what their rules and guidelines are all about. The only stumbling block that I may foresee is because of it’s not open nationally to a lot of the brokers, it will probably create a [movable] flow of volumes, so you have seen that for me the stumbling block will be turnaround time in approvals to the application process.
Jemima Codrington: But don’t forget about relationship building, brokers want to see and hear more from credit unions.
Enza Venuto: What I think credit unions should do to attract more mortgage brokers is to create more online or more visible representation aboard, educate the brokers a little bit more about their product as opposed to right now they don’t come out to visit the broker offices, the broker channels, they don’t pick up the phone or call us. It’s like we have to call them versus them calling us. So because we are interested in their product, it’s enticing that I will pick up the phone and call, so I think what they should do as they want to create more volume and create more visibility in the community, they should be more visible to the community channel.