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“A Look at New Business Opportunities for Real Estate Professionals”

“A Look at New Business Opportunities for Real Estate Professionals”. Getting to Know the Credit Union Industry. Bob Dorsa, Executive Director ACUMA November 6, 2004. “New Business Opportunities for Real Estate Professionals”. WHY ARE CREDIT UNIONS DIFFERENT?

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“A Look at New Business Opportunities for Real Estate Professionals”

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  1. “A Look at New Business Opportunities for Real Estate Professionals” Getting to Know the Credit Union Industry Bob Dorsa, Executive Director ACUMA November 6, 2004

  2. “New Business Opportunities for Real Estate Professionals” WHY ARE CREDIT UNIONS DIFFERENT? • A credit union is a cooperative financial institution, owned and controlled by the people who use its services. • These people are members. Credit unions serve groups that share something in common, such as where they work, live, or go to church.

  3. “New Business Opportunities for Real Estate Professionals” WHY ARE CREDIT UNIONS DIFFERENT? • Credit unions are not-for-profit, and exist to provide a safe, convenient place for members to save money and to get loans at reasonable rates. • Credit unions, like other financial institutions, are closely regulated. And they operate in a very prudent manner.

  4. “New Business Opportunities for Real Estate Professionals” WHY ARE CREDIT UNIONS DIFFERENT? • The National Credit Union Share Insurance Fund, administered by the National Credit Union Administration, an agency of the federal government, insures deposits of credit union members at more than 9,000 federal and state-chartered credit unions nationwide. • Deposits are insured up to $100,000.

  5. “New Business Opportunities for Real Estate Professionals” WHY ARE CREDIT UNIONS DIFFERENT? • What makes a credit union different from a bank? Like credit unions, these financial institutions accept deposits and make loans--but unlike credit unions, they are in business to make a profit. • Banks and savings & loans are owned by groups of stockholders whose interests include earning a healthy return on their investments.

  6. “New Business Opportunities for Real Estate Professionals” WHY ARE CREDIT UNIONS DIFFERENT? • CU’s use secondary markets and portfolio lending to balance their product base. Portfolio lending has its own unique flexibility. • Flexibility in underwriting, local appraisers and originators may make a difference. Realtors may find more options and more flexibility with CUs.

  7. “New Business Opportunities for Real Estate Professionals” WHY ARE CREDIT UNIONS DIFFERENT? • Many CUs desire relationships with Realtors, and are learning how! • Credit Unions range in size from several millions to several billions. Like banks some are more aggressive than others. • Many CUs actually have commissioned Loan Officers in the field!

  8. “New Business Opportunities for Real Estate Professionals” CREDIT UNION BEST PRACTICES… A LOOK AT SOME UNIQUE AND INNOVATORS IN THE CREDIT UNION COMMUNITY

  9. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: Provident Location – Redwood City, CA Total Assets $ $1.3 billion Number of Members: 90,000 Membership: Educators and small businesses in Northern California

  10. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: Provident Unique Residential Lending: “Portable Mortgage” Borrowers can transfer the terms of their existing loan and mortgage insurance to a new residence. Designed to hedge the “sting” of a new loan at a higher rate in the rising rate environment.

  11. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Portable Mortgage - Features & Benefits • The mortgage can be “ported” two times. • No additional fee or rate difference for the portableoption • Available on primary residence, second hones or as refinance.

  12. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: American First Location – LaHabra, CA Total Assets $ $580 million Number of Members: 80,000 Membership: Small businesses and those living or working in Orange County, California

  13. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: American First Unique Residential Lending: CU and Fannie Mae team up for home buying assistance for members of IBEW Local 441 and 440 and Ironworkers Union 416 and National Electrical Contractors Assoc. in Orange County, CA.

  14. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Affordable Housing Assistance – Features & Benefits • Helps more than 2,000 union members purchase homes • Bilingual financial literacy training For home buying and financial management • “$0” down financing option • Interest-only option

  15. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: Midwest Financial Location – Ann Arbor, MI Total Assets $ 167 million Number of Members: 15,000 Membership: All people in Health Care industry and three counties in Michigan.

  16. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: Midwest Financial Unique Residential Lending: “First Time Home Buying Program for Resident Physicians” Borrowers consist of students entering residency at U of M Health System. Residency can last anywhere from four to eight years. Salaries are low during residency service but should definitely increase once residency is completed.

  17. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... “First Time Home Buying for Resident Physicians” - Features & Benefits • Student Loans not counted on Qualifying • Originated as a “portfolio” loan • Using most standard ARM products • 100% financing with no M.I.

  18. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: Mission Location – San Diego, CA Total Assets $ 1.9 billion Number of Members: 130,000 Membership: educational employees and people living or working in San Diego county.

  19. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... Credit Union: Mission Unique Residential Lending: First-time Homebuyers – CU offers homebuyer counseling via the Internet for buyers with high ratios or poor credit. Credit is given toward counseling. Also offers quarterly seminars with Realtors as speakers

  20. “New Business Opportunities for Real Estate Professionals” Credit Union Best Practices... “First Time Home Buying” - Features & Benefits • Interest only loans up to $400k, 95% LTV with M.I. • 100% financing to $500k no M.I. • 40 year maturities on loan products. • City & County Assisted Financing (MCC) products available.

  21. “New Business Opportunities for Real Estate Professionals” THE NATION’S CREDIT UNIONS HOW DO REALTORS FIND A CREDIT UNION OR FIND A CREDIT UNION FOR THEIR CLIENTS?

  22. “New Business Opportunities for Real Estate Professionals” How to JOIN a Credit Union… • Call the state Credit Union league. A representative will tell you about credit unions in your area that you are eligible to join. • Ask an employer. Many Companies may sponsor a credit union, or may be a select employee group (SEG) that has access to a credit union. Many employers offer direct deposit of payroll to a credit union.

  23. “New Business Opportunities for Real Estate Professionals” How to JOIN a Credit Union… • Poll the family. A spouse's employer sponsor a credit union? Most CU’s allow credit union members' families to join. At some, only members of your immediate family are eligible. At other credit unions, family may include extended family members, such as cousins, uncles, and aunts.

  24. “New Business Opportunities for Real Estate Professionals” How to JOIN a Credit Union… • Quiz the neighbors. Some credit unions have a "community" field of membership, serving a region defined by geography rather than by employment or some other association. Ask friends in the community if they know of a credit union you may join.

  25. “New Business Opportunities for Real Estate Professionals” How to JOIN a Credit Union… • Read the yellow pages. Some credit unions rarely advertise, so you might not know about them unless you look them up. A yellow pages display ad may state a credit union's field of membership. If not, at least you'll know what number to call to ask about membership eligibility.

  26. “New Business Opportunities for Real Estate Professionals” How to JOIN a Credit Union… • Call The Credit Union National Association. (800) 358-5710. They can help find a credit union • They will also provide the name and telephone number of a person at the credit union league in your state who can help you find a credit union to join.

  27. “New Business Opportunities for Real Estate Professionals” How to locate a Credit Union using the Internet… http://www.creditunion.coop/cu_locator/index.html

  28. “New Business Opportunities for Real Estate Professionals” About ACUMA…The American Credit Union Mortgage Association is a non-profit trade association with the primary focus of improving the awareness of real estate lending in the Credit Union system. Since credit unions differ in size we highlight the leaders and work with our smaller CUs to participate cooperatively so every one of the nearly 90 million American can obtain a mortgage thought their credit union affiliation. For more information contact bdorsa@acuma.org

  29. “New Business Opportunities for Real Estate Professionals” THANK YOU

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