Blogs

How Configurability and APIs Can Help Credit Unions Position Themselves for Success

By Lyndsey Hearn posted 13 days ago
By Sean Dugan As interest rates tick up again, credit union lenders are navigating a more competitive and cost-conscious environment. Tightening market conditions often demand doing more with fewer resources, and it may be tempting to cut costs when borrower leads are harder to come by. However, lean periods can also offer credit unions a valuable opportunity to strengthen their positioning, so they're ready when members are seeking lending options. The Advantage of Leveraging Web-Based APIs Implementing web-based application programming interfaces (APIs) allows credit unions to more effectively support innovation in response to evolving market demands ...

Promoting inclusive lending is imperative for future business growth

By Bernard Nossuli posted 18 days ago
Diverse households account for trillions in purchase opportunity in the next five years—and failing to adapt may lead to costly penalties. Recently, the U.S. Department of Justice (DOJ) and the Consumer Financial Protection Bureau (CFPB) has taken a strong stance on redlining, taking legal action yet again. As of October 15, Fairway Independent Mortgage Corporation (Fairway) is to pay a $1.9 million penalty and provide $7 million in loan subsidies as part of its settlement. Though a drop in the bucket for Fairway, the settlement underscores the critical importance of diverse lending initiatives. Unintentional Redlining Costs Many credit unions may ...

3 Ways Credit Union Lenders Can Overcome a Spooky Market with Technology

By Lyndsey Hearn posted 10-22-2024
By Wes Horbatuck Today’s mortgage market is a bit spooky, like navigating a corn maze on a dark night. After a couple of years of scaling up for high origination volumes amid historic low rates, you’re still reeling from scaling back production under the weight of the highest mortgage rates in decades. You start to wonder, “How do we navigate this maze? Are there tools or technologies that can help us survive these BOOm and bust cycles?” Here are three ways credit union lenders can leverage technology to stay on course through these market twists and turns: 1. Invest in Technology – It’s Less Daunting Than You Think This is an ideal ...

Citadel’s Settlement with the DOJ - A Turning Point for Credit Union Lending

By Lyubomira Buresch posted 10-21-2024
Credit unions have long held a reputation for being community-focused nonprofits, prioritizing their members' needs over profits. But even credit unions, as Citadel Federal Credit Union recently discovered, must ensure their practices align with fair lending laws. Citadel’s recent settlement with the U.S. Department of Justice (DOJ) over allegations of redlining underscores the need for lenders of all kinds to employ data-driven strategies to serve all communities equally. While Citadel’s case is the first time a credit union has faced federal redlining charges, it’s also an opportunity for reflection and improvement not just for Citadel, but for the entire ...

iEmergent’s three-year forecast revised as purchase mortgage originations fall short

By Bernard Nossuli posted 10-16-2024
Forecast revised downward amid high interest rates and low housing affordability iEmergent provides highly accurate mortgage industry forecasts, regularly outperforming other popular predictors. This year, however, iEmergent has revised its 2024-2026 U.S. Mortgage Origination Forecast to reflect ongoing economic conditions, predicting lower-than-anticipated growth for the next two years, particularly in the purchase mortgage market. A Quick Look at the Numbers Mark Watson, chief economist at iEmergent, predicts that purchase mortgage originations in 2024 will decrease compared to 2023 despite increased average loan sizes. Credit unions and ...

The Reduction of Interest Rates Explained

By Keith Kemph posted 10-02-2024
Michael Harris is Managing Director and Partner of the Servicing Practice at BlackFin Group The Reduction of Interest Rates Explained In our recent articles we have been discussing all that is the origination and real estate markets along with the current state of the economy and its impact on buyers and sellers. As we all know the recent reduction in interest rates could have significant implications for the real estate market, particularly in the residential sector. Lower interest rates tend to decrease the cost of borrowing, making mortgages more affordable for potential homebuyers. Historically, this often leads to increased ...

How Credit Unions Can Embrace AI/ML to Stay Competitive

By Lyndsey Hearn posted 09-26-2024
By Nick Fragale Artificial intelligence (AI) and machine learning (ML) are revolutionizing the financial services industry. Is your credit union prepared? AI and ML are advancing rapidly, with new developments emerging regularly. Despite these advancements, many credit unions have been cautious in adopting these technologies, mainly due to the regulatory complexities of the industry. Credit unions are now exploring how they can implement AI/ML strategies effectively while staying compliant with evolving regulations. Currently, many financial institutions leverage AI/ML for routine processes, like document verification. But this only scratches ...

Lenders, Who Needs a Technology Strategy Anyway?

By Keith Kemph posted 09-20-2024
By Andrew Weiss – Partner, Technology Practice at BlackFin Group No one familiar with the Mortgage Industry disputes the fact that technology is a necessary part of being in this business. In fact, many would say technology is a “necessary evil”; surveys suggest that few lenders are happy with their technology platform. Most seasoned mortgage professionals see that the business operates an awful lot like to the way it did in 2000 except that costs have gone through the roof. At the same time, our industry is filled with Vendors who are promising that if a Lender chooses their product, huge efficiencies will follow while innovations ...

Case Study: Top credit union boosts growth and expands network

By Bernard Nossuli posted 09-19-2024
LMCU increased originations, expanded its referral network, and recruited ideal talent using iEmergent’s market intelligence insights Lake Michigan Credit Union (LMCU) is a top credit union with 59 branches, more than $12 billion in assets, and over 534,000 members. LMCU prides itself on equipping its loan originators (LOs) with competitive loan products and digital mortgage tools that provide an unmatched mortgage experience for members. In late 2021, as the mortgage market transitioned from one dominated by refinances to one centered on purchase lending, LMCU’s sales managers needed a way to identify untapped purchase loan opportunities, recruit ...

Shift Happens

By Keith Kemph posted 09-11-2024
Join Michael Simon, Principal of BlackFin University as he discusses how 'Shift Happens' - talking all things change, management, leadership and learning and development. In this episode's guest Keith Kemph, President and CEO of Blackfin Group, highlights the keys to success with any new project that a bank, credit union, or mortgage company tries to implement. Keith is a 30-year veteran of consulting within the financial services industry and his background includes progressive management and executive roles within Citigroup, Bank of America and Merrill Lynch. Listen Now to SHIFT HAPPENS brought to you by BlackFin University

Update for the Current MSR Market MSR Update for September 2024

By Danielle Dvorchak posted 09-05-2024
Update for the Current MSR Market MSR Update for September 2024 Finally, inflation data signals that the Fed’s anticipated rate reduction action is coming very soon, and probably during their meeting in September. Mortgage rates have already dropped by about 48 basis points since July 31, 2024, and 65 basis points lower since the end of Q2. The industry has already experienced some robust refinancing activity since July 2024 which could continue as the market awaits the Fed’s announcement. The real estate industry is anticipating robust mortgage/housing activity once the Fed’s announcement becomes ...

Are Our Homes Becoming ATMS Again?

By Keith Kemph posted 09-04-2024
Are Our Homes Becoming ATMS Again? We all have been holding our breath to hear what Jerome Powell would say in Jackson Hole, WY last week about the economy and the possible easing of interest rates. CBS News says while there is a possibility of a 50 basis point cut, expectations are that the federal funds rate will be reduced to a range of 5.00% to 5.25% in September — a decrease of 25 basis points. This approach aligns with the Fed's typically gradual policy adjustments. With the initial rate cut expected to be minimal, the impact on mortgage rates is likely to be modest. If the Fed implements a 25-basis point cut, for example, ...

Homebuyers Go Back in Time—And Share What They Would Have Done Differently

By Mike Bedard posted 08-28-2024
Buyers Go Back in Time—And Share What They Would Have Done Differently Caveat emptor—“let the buyer beware”—is a well-known expression in the real estate industry. What it means is rather straightforward: A buyer must do their due diligence when purchasing a home. Even as buyers are advised to ensure properties are in good condition and free of defects when making a purchase, homebuyer’s remorse has become an all-too-common phenomenon. REALTOR® Magazine recently reported that a staggering 82% of buyers expressed regrets about their home purchases. The most common one? Purchasing a property that required too much maintenance. The second-most cited regret ...

Variables Affecting Housing Market

By Keith Kemph posted 08-28-2024
Variables Affecting Housing Market We have been discussing for most of the year how the current mortgage origination market is navigating a complex landscape influenced by high interest rates and changing economic conditions. As we all know the Federal Reserve's ongoing efforts to curb inflation have led to higher interest rates, making borrowing more expensive. This has resulted in the last year in a decline in mortgage applications, particularly for refinancing, as many homeowners locked in lower rates during the pandemic. The higher rates have also made it more challenging for first-time homebuyers to enter the market, ...

How to Ensure a Successful Mortgage Technology Implementation at Your Credit Union

By Lyndsey Hearn posted 08-21-2024
By Sean Dugan For credit unions, choosing new technology is only the first step in a much larger journey. After months of careful selection, the real challenge begins: ensuring a seamless implementation. While the investment made can create a sense of urgency to get systems operational quickly, it's important to approach this phase with deliberate planning to avoid potential pitfalls. Rushed implementations can lead to inefficiencies and longer timelines. We recently held discovery sessions with dozens of lenders of various sizes, including many credit unions. Here are four best practices they used to build a bulletproof rollout plan when implementing ...

Keith Talks AI with Preferred Partner PrudentAI

By Keith Kemph posted 08-21-2024
BlackFin President & CEO, Keith Kemph, speaks with Paul Gigliotti in the Sharl Cage to discuss how AI will enhance mortgage professionals' jobs and not eliminate it. There will be change ands it natural to fear it but imbracing technology will enhance the process ands make it better overall. Listen Now While You Work https://www.youtube.com/watch?v=5zoeE-Ob500

GSE Guidance – Home Run Strategy!

By Keith Kemph posted 08-14-2024
GSE Guidance – Home Run Strategy! This is it – the final article of my series “GSE Guidance”. You might ask why did I invest the time and effort in writing these series? It’s simple, I have a genuine passion for this business and know the importance of being an approved Seller/Servicer with Fannie Mae and/or Freddie Mac. I have learned during my lengthy career in Capital Markets that having more than one investor option is critical to the long-term strategy of a firm. With that in mind, this article will focus on three key elements: Benefits of working with Fannie Mae and Freddie Mac Business readiness ...

A New Era in Mortgage Lending

By Bernard Nossuli posted 08-13-2024
Seizing Opportunity and Equity for Future Growth The housing market has evolved. The boom years are behind us, and things are slowly but surely changing. This evolution demands a new paradigm for mortgage lending, one that replaces reactive decision-making predicated on historic trends with proactive strategies built on forward-looking data and forecasts . One centered not on risk avoidance but on seizing business opportunity, diversity and collaboration. Held back by tradition The mortgage landscape is changing in several ways. Here’s what the numbers tell us: The US mortgage market is shrinking. The size of the market decreased almost ...

Common L&D Mistakes in Employment Onboarding

By Keith Kemph posted 08-07-2024
Michael Simon , Principal Consultant with BlackFin Group University Effective onboarding is crucial for setting up new employees for success. However, it's equally important to understand mistakes and traps that L&D can fall into during the onboarding process, potentially hindering new employee integration, productivity, and satisfaction. Here’s a guide on the missteps to avoid in the onboarding process. Overloading Information Almost without exception, new hires are faced with assimilating huge volumes of information: job skills, role requirements, org charts, culture, regulatory pieces, safety, etc. One of the most ...

MCT's Update for the Current MSR Market August 2023

By Danielle Dvorchak posted 08-05-2024
The Fed’s recent announcement indicated no changes to the current Fed Funds rate, hence opening the possibility for a rate decline during their next meeting in September. It appears that the market has already built a 25 basis points decline in the mortgage offerings as we observe continuous easing in the 10 Year Treasury rate and the entire yield curve. As of July 31, 2024, the 30-year primary mortgage rate has retreated by 15 basis points while float income rates have declined by an average of about 45 basis points. MSR portfolio holders should expect values to retreat from the previous month’s highs by about two to five basis points. However, those levels ...