Originations Growing at Community Banks, Credit Unions

Milwaukee, Wis.-based software as a service (SAAS) provider Mortgagebot said it’s experienced an increase in demand for its online mortgage origination software and integrated point of sale (POS) platform from community banks and credit unions. The developer said it has more than 900 bank and credit union clients and its new POS platform allows customers to initiate and complete the mortgage origination process via the Internet, through a branch or call center, and by loan officers. “For years our clients have been almost evenly split between financial institutions with under $500m in assets and those with over $500m,” said Mortgagebot president and CEO Scott Happ. “But through October 2009, we’ve seen a 33% increase in new clients with less than $500m in assets.” Small lenders and credit unions are experiencing an increase in mortgage business. To handle the increase, the firms are implementing new technologies to minimize the need for more staff. Happ said from January through September 2009, application volumes increased year-over-year by 105% at banks with assets under $99m. Banks with assets between $100m to $249m increased 84%, and by 72% for banks with $250m to $499m in assets, an average increase of 87%. Louisiana Federal Credit Union (LFCU) of LaPlace, La. is one such financial institution that’s experienced a surge in mortgage origination volume. From 2004 to 2009, LFCU tripled its annual mortgage volume, while the Louisiana credit union industry had an average 60% increase in mortgage business. The credit union’s mortgage supervisor, Linda Boe, said she did not have to hire additional staff because of its use of Mortgagebot software systems. “Lenders who are looking to grow their mortgage business need to look at online application technology,” Boe said. Write to Austin Kilgore.

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