In recent years, financial institutions have faced mounting pressure to adapt to dramatic shifts in the mortgage market. Rising interest rates, soaring home prices, and changing borrower demographics require lenders to rethink their strategies. For BECU, Washington’s largest not-for-profit credit union, these challenges became an opportunity to reimagine its mortgage lending approach. By leveraging iEmergent’s Mortgage MarketSmart platform, BECU has closed market gaps and accelerated growth in multicultural lending.
From Challenges to Opportunities
As refinance activity declined and interest rates rose at the close of 2022, BECU shifted its focus to purchase loan originations. As BECU updated its mortgage lending strategies for this transition, the team focused on finding better ways to identify purchase loan opportunities in a rapidly evolving market. They quickly recognized that limited data was the main barrier to enhancing mortgage offerings and addressing market gaps. To gain deeper insights — especially for multicultural lending programs — and track progress toward lending goals, BECU began searching for a solution that could deliver actionable mortgage and demographic data.
The Power of Data and Mortgage MarketSmart
BECU found the answer in iEmergent’s Mortgage MarketSmart platform. Designed to empower lenders with predictive origination forecasts and demographic insights, Mortgage MarketSmart enabled BECU to identify underserved communities and refine its lending strategies to meet evolving market needs. Its ability to drill down into neighborhood-level data allowed BECU to connect with borrowers more intentionally and address gaps in its coverage.
With Mortgage MarketSmart, BECU gained the ability to measure its performance against specific goals while identifying untapped growth opportunities. This data-driven approach positioned the credit union to serve its diverse member base better and achieve meaningful results in a competitive market.
Transformational Results
Leveraging the insights from Mortgage MarketSmart, BECU achieved several impactful results:
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Identified and Closed Market Gaps: Using demographic and geographic data, BECU uncovered underserved areas, including a gap in serving Asian borrowers in King County. By hiring loan officers specializing in this demographic and implementing targeted strategies, BECU outperforms competitors by 11% in this market.
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Set and Measured Goals Efficiently: Mortgage MarketSmart streamlined BECU’s goal-setting process, enabling the credit union to pinpoint successes, adjust strategies, and remain accountable to its objectives in a dynamic market.
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Planned for Future Growth: Insights from the platform revealed that the most significant barrier to homeownership for many community members was the down payment. Armed with this data, BECU began developing Special Purpose Credit Programs (SPCPs) to help borrowers overcome financial challenges and achieve lasting homeownership.
“Mortgage MarketSmart had all the data we needed and more, all visualized beautifully,” said Lorraine Stewart, Senior Vice President of Mortgage at BECU. “Its ability to drill down into demographic and income data at the neighborhood level is unparalleled. It’s a cornerstone of the data we use to ensure we serve the entirety of our community.”
Driving Inclusive Lending as a Mission
BECU’s journey illustrates the transformative impact of a data-driven approach to mortgage lending. By embracing tools like Mortgage MarketSmart, financial institutions can align their efforts with the needs of their communities, close homeownership gaps, and unlock new growth opportunities.
BECU’s success story is a model for other credit unions seeking to build inclusivity into their lending strategies. Through intentionality, innovative tools, and a focus on measurable outcomes, credit unions can create lasting economic opportunities for underserved communities while achieving sustainable growth.
To learn more about how BECU achieved these results, read the full case study.