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.

 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.

 “ 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”.

 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.

CharacteristicsResponsibilities 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 tirelessCreate and build local housing & community relationships Entrepreneurially natureDesign 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 speakerDevelop 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

1. The Housing Climate in the Community 2. Adapting the Credit Union’s Culture 3. Key Housing Relationships 4. Key Member Influencer Relationships 5. Key Member Segments 6. Sources of Business 7. Marketing 8. Production 9. Originating Loans

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 miles from main office

20108/31/2011 Loans Volume$304,335,751$216,346,324 Ave Loan Size$167,797$166,548 Purchase Vol34%38% Conventional Vol77%68% FHA16%17% VA7%15% Conv Purch52%56% FHA Purch39%35% VA Purch9% Total Gov't Purch48%44%

 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

 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!

 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 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

Child sites for external MLO’s Network! Targeted zip code mailings for new markets/new MLO’s Mortgage specific offer for Business Banking members Mortgage $100 Pre-Approval offer Pharmacy bags promoting Ent Mortgage Lending Targeted banner ads within Online Banking Breakfast with the builder’s sponsorship Housing and Building Association executive sponsor  Website and co branding sponsorship  Education sponsors for monthly HBA events

 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

“ An intense, caring, passionate, strategic individual who can execute yet also understands that housing is today’s toughest economic challenge for most members.”

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

Type ytd Loans Volume139,000,00074,000,000 Avg Loan Size$146,855$165,919 Purchase Money46%62% Refinance Loans45%29%

 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.