Appointing a HOUSING CZAR

Business Development within the Mortgage Origination

Review of the CU Housing Roundtable white paper “Appoint a Housing Czar”. (Mark Wilburn, Senior Vice President – 66 Federal Credit Union)

Presentation of Business Development Strategy of Ent Federal Credit Union (Kathie Spurling, Manager of Real Estate Production- Ent Federal Credit Union)

Presentation of Business Development Strategy of 66 Federal Credit Union (Roberta Mages Vice President Mortgage Origination – 66 Federal Credit Union)

Questions and Discussion.

Agenda for the Session

Discuss different variations of Business Development within the Housing Finance arena.

Ask a lot of questions. Identify what can be taken back and applied

to your operation. Enjoy.

Goals of the Session

“ On staff they have someone who passionately believes their credit union must play a role in housing finance. Understanding their communities, local housing dynamics and member needs are an avocation , not merely a job. They believe it, they are passionate about the topic and, just as importantly, they get their credit unions to commit to housing finance as a core strategy”.

The Need

Commit to Housing Finance as a Core Strategy.

Understand your Community’s Housing Needs.

Position your Credit Union: 1. Culturally 2. Strategically 3. Operationally Selecting the right Positioning Strategy.

The Plan

Characteristics Responsibilities

Deep understanding in the mission and philosophy of credit unions.

Create and execute annual housing plan

Passionate about members and housing

Create and build Realtor relationships

Energetic and tireless Create and build local housing & community relationships

Entrepreneurially nature Design and execute Product and Pricing strategy

Strategic thinker who can translate strategy into action

Develop and execute housing finance training plan for CU staff

Motivational leader and speaker Develop and execute housing finance education plan for members

Proven leadership abilities in housing

Integrate mortgage lending into culture

Self motivating into unchartered areas

Drive cultural change

Housing Czar aka Business Development

1. The Housing Climate in the Community2. Adapting the Credit Union’s Culture3. Key Housing Relationships4. Key Member Influencer Relationships5. Key Member Segments6. Sources of Business7. Marketing8. Production9. Originating Loans

The Annual Housing Plan

Ent Mortgage Lending

Purchase Mortgage Business

12 mortgage loan officers◦ 10 external◦ 2 internal◦ 1 assistant◦ 1 temp

8 located at main office 4 in remote centers

◦ geographically 10-60 miles from main office

Ent Mortgage Production Set Up

  2010 8/31/2011Loans 1858 1299Volume $304,335,751 $216,346,324 Ave Loan Size $167,797 $166,548 Purchase Vol 34% 38%Conventional Vol 77% 68%FHA 16% 17%VA 7% 15%Conv Purch 52% 56%FHA Purch 39% 35%VA Purch 9% 9%Total Gov't Purch 48% 44%

Background Volume

Product mix is important◦ Must be in the market to support what Realtors

and first time buyers need CHFA El Paso Bond Down payment assistance programs FHA & VA = 46% purchase loan average

Business Development

Member seminars First Time Home Buyers and Construction

Lending Real estate focus week Mortgage day in the center Mortgage resource center online Servicing retained Home shows Yes, we do mortgages!

 Member Education

Host Realtor CE classes Use available resources Colorado Association Realtors (CAR) annual

event Realtor Rally booth and sponsorship Quarterly newsletters to Realtor database Business Journal and Real Estate Journal

articles Sponsorships Service and communication

◦ Culture - Realtors are clients too!

Realtor and/or Builder Education

Realtor specific events Ski bus Host events fundraiser for AHA, silent

auction, giveaways Golf tournaments Texas hold em events CAR event Realtor Rally Partner with your companies for top

prospects, mi & title

Realtor Business Development

Child sites for external MLO’sNetwork!Targeted zip code mailings for new markets/new

MLO’sMortgage specific offer for Business Banking

members Mortgage $100 Pre-Approval offer Pharmacy bags promoting Ent Mortgage LendingTargeted banner ads within Online BankingBreakfast with the builder’s sponsorship              Housing and Building Association executive

sponsor Website and co branding sponsorship Education sponsors for monthly HBA events

Existing and Past Marketing

A purchase rate match program A direct mail campaign to help increase

purchase loans volume Host large scale event targeting realtors Creating mini podcasts targeted toward

Realtors on “hot topics”               Placement of banner ads on various MLS

websites Focus on “we’ll make it right” media and we

process and service locally

New Ideas to Try in 2012

“ An intense, caring, passionate, strategic individual who can

execute yet also understands that housing is today’s toughest

economic challenge for most members.”

Find your Housing Czar!

66 Federal Credit Union Mortgage

Lending Purchase Mortgage Business

1 manager (underwriting and supervision) 1 assistant manger (systems and

underwriting) 2 business development officers 4 mortgage loan officers 4 processors 1 funder 1 receptionist

66 FCU Mortgage Production Set Up

Type 2010 2011 ytd

Loans 953 446

Volume 139,000,000 74,000,000

Avg Loan Size $146,855 $165,919

Purchase Money 46% 62%

Refinance Loans 45% 29%

Background Volume

Local Realtors in Bartlesville, Ok (66 FCU Corporate Offices)

Local Realtors in Lawrence, Ks. (Branded as KU Credit Union with 3 branch locations)

Relocation with ConocoPhillips and Tyson Foods.

Marketing to members nationally.

Business Development