A Look at New Business Opportunities for Real Estate Professionals

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?
• CUs 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
  portable option
• 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 NATIONS
• 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 CUs 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 ACUMAThe 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_at_acuma.org

29
New Business Opportunities for Real Estate
Professionals

• THANK YOU