WASHINGTON–Regardless of where a credit union stands in adopting technology around mortgage and HELC lending, where many CUs continue to fall behind is in updating their processes, according to one expert.
But embracing changes to processes can lead to everything from happier members to less-stressed employees to greater market share and improved margins, said Jorge Ponce, director of business development with Austin, Texas-based FirstClose, which automates real estate settlement services to better serve borrowers. He said problems develop as the result of two key reasons.
First, Ponce said many simply don’t know that there are better software and process improvements in the market. That requires greater openness to alternatives that are available, he told CUToday.info during CUNA’s recent GAC.
The second reason, according to Ponce, is an issue familiar to many across a variety of platforms–a hesitancy to change.
“They are having success with what they have, and if you are meeting your goals and hitting your mark, there is an idea that ‘I can’t get any better,’” he said. “I have worked with both large and small credit unions and this is challenge that is independent of asset size. But you have to come back to ‘How can I change or improve.’”
Credit unions can change and improve their real estate settlement processes, said Ponce, by being open and recognizing how a software change can change everything for both the CU and the member.
“Technology is supposed to make life easier, to streamline things for the entire lending operation,” he said. “In due time you are going to have to be fast and efficient. If it’s 45 days vs. 30 days, I am going to go with the 30 days credit union every time. Everything is about speed now.”
When FirstClose begins working with a new credit union Ponce said it takes a consultative approach, beginning by asking questions around current processes.
“We don’t want to disrupt what has worked; we want to enhance the process,” he said.
Embrace the Technology
He said FirstClose does not want the credit union to buy technology that it won’t use. “You have to embrace the technology and make changes,” he said. “Credit unions want to learn. They are receptive. I think they just don’t know how to go about it.”
Ponce said a credit union that selects FirstClose’s solutions for real estate settlement services can be up and running in 30 days “if they are up for it. And they will see the benefits in as few as 60 days in turnaround time and cost reductions.”
In addition, the credit union will be able to use the savings and improved cash flow to make more loans, he said.
“Once you improve contributions to margins and you are making more money, you can also ask, 'What else can I do?'” Ponce said.