Research reveals that partnering with real estate agents can greatly increase purchase mortgages
SCOTTSDALE, AZ (April 29, 2013) – CU Realty Services has released a new white paper “REALTORS®: FRIEND OR FOE? A Study of Credit Union Fears and Success in Protecting Members’ Mortgage Business.” The paper discusses credit unions’ fears about working with real estate agents – and the fact that most of these worries are unfounded.
The basis for the white paper was CU Realty’s January survey of some 200 employees at client credit unions. Respondents were asked to identify the most relevant disadvantages of working with Realtors. Number one among more than a third of those answering was that Realtors “can refer members’ purchase mortgage loans elsewhere.” The next biggest fears were that agents “can provide poor service” and they “may not understand/work well using our processes.”
Yet, the white paper notes, credit unions’ concerns were not borne out in the survey data. When asked about the most relevant advantages to Realtor relations, 41.2 percent said they were “a great value-added resource for our members.” Just as many said Realtors “can help us keep our members’ purchase mortgage loans at the credit union.” And another 17.6 percent continued that theme, stating real estate agents “can refer new business back to our credit union.”
Mike Corn, President/CEO of CU Realty Services says while some credit unions thought they might lose first mortgage loans by working with agents, just the opposite happens.
“Credit unions worry they’ll lose first mortgage loans, but our client credit unions saw business grow,” he said. And while some also are afraid members will receive poor service, members whose credit unions had strong real estate programs gained significant service benefits.”
Further, when asked about the importance of Realtor relations, nearly 80 percent of the credit unions responding said agents are critical or very important. And the other 20 percent said they are at least somewhat important.
The realty firm’s white paper indicated that credit unions also understand their success depends on the effectiveness of their real estate program, noting: “Among those who had launched and then abandoned other programs before coming to CU Realty Services, the core reasons given were either they didn’t experience the results they had hoped for or didn’t have the resources to manage the program effectively on their own.”
Even so, the white paper notes, these credit unions indicated they had experienced enough success in working with Realtors that they were game to try again – providing they had a strong, well-structured program.
“Credit unions can build Realtor relationships on their own or opt for a professional program,” Corn said. “It’s a matter of the resources they want to dedicate. Our clients contract with CU Realty Services because we manage many of the key activities and offer automated lead-tracking as part of our services. That saves them a lot of time and money.”
The white paper also addresses homebuyer and seller behaviors, based on data from a 2012 report by the National Association of Realtors®.
“Even with the Internet’s growth in popularity as a resource, agents are still integral to the transaction,” the white paper stated. “In 2012, 89 percent of home-buying consumers used a real estate agent or broker – an increase from 69 percent 10 years ago. Further, 87 percent of those that used agents relied heavily on them for advice and assistance”
Click here for a complimentary copy of the new white paper.
About CU Realty Services, LLC
CU Realty Services provides real estate services to credit unions across the nation, helping them increase their purchase mortgage business. Launched in 2001, the CUSO has worked with more than 100 credit unions and thousands of their members. CU Realty’s range of web-based tools helps homebuyers find homes, research neighborhoods, calculate costs, connect to experienced real estate agents, and earn a rebate. By offering this program to members, credit unions are able to achieve significant increases in their purchase mortgage business. For more information, call Tina Powers, (800) 203-9014, ext. 104, or visit www.curealty.com.