Borrowers who are looking to refinance are shifting more and more to credit unions instead of banks. This is a result of many colliding events notably an overall disillusionment of the work, honesty, and values of the big banks.
“We’d be remiss if we didn’t give a shout-out to the major banks for being annoying to consumers and forcing people to seek out other alternatives,” says Bob Dorsa, the president of the American Credit Union Mortgage Association in Las Vegas.
Credit Unions are seeing this national trend and working fervently to foster an atmosphere that keeps the customers rolling in. They are becoming as competitive as they can in regard to rates. In addition, credit unions tend to offer lower closing rates than most big banks, and by keeping their services in-house, credit unions are able to be more response and prompt in their service.
This is a strong trend, but the longevity of it is in question. “Historically, when rates go up and refi goes down, our share and origination volume drops,” Dorsa, he president of the American Credit Union Mortgage Association in Las Vegas, says. “We’ve made a concerted effort this time to get out in front of REALTORS®, so we hope we won’t take as much of a hit production-wise as we have in the past.”
Source: “The Credit Union Alternative,” The New York Times (Dec. 13, 2012)