Credit unions are trusted financial partners to their strong member network, with over 1,500 reporting to HMDA in 2024 – nearly double the number of independent mortgage banks (IMBs) reporting the same. Yet, when it comes to mortgages, many members look to IMBs first, with 2024 HMDA data attributing 63.8% of home purchase volume to IMBs, in comparison to merely 5.3% to credit unions. IMBs have built reputations on fast, convenient mortgages for borrowers, while credit unions often face constraints that prevent them from offering the same to their members.
By using strategic investments into smart technology, credit unions can deliver IMB-level mortgage experiences without the extra overhead. Through carefully leveraged automation and self-serve technologies, credit unions can serve their loyal members with finesse and expertise.
Rising Service Pressure
Today’s borrowers expect fast, transparent, mobile-friendly service that is as precise as it is convenient. As specialized mortgage providers profiting from lending, IMBs can and do invest heavily in technology to make pre-approvals, applications and payments effortless for their borrowers.
Credit unions operate as not-for-profit organizations that return their profits to their members. This leads credit unions to prioritize strategic, careful spending to maximize their member benefits, which can mean smaller teams and less room to experiment with new technology. With fewer staff, keeping up with after-hours requests for items like preapproval letters is difficult and can lead to costly delays for members.
As a result, even loyal members may choose or switch to IMBs for their mortgage needs, seeking more responsive and specialized service. To compete, credit unions must find ways to provide a high level of service while working lean.
Smart Technology as the Equalizer
Strategic technology investment empowers small credit union mortgage teams to remain true to their community roots while delivering the same seamless experience as IMBs. Streamlined processes build member trust and loyalty and empower 24/7 service without burning out staff or increasing operational costs.
There are four critical factors credit unions must consider when building an efficient, effective tech stack:
1 - Simplicity
Plenty of technology solutions that provide useful tools—too many useful tools. Lightweight, simple solutions that directly address specific points of friction in the loan process help eliminate frustration, reducing extraneous features that can slow adoption, confuse users, and cost more.
2 - Automation
By automating repetitive processes, credit unions can empower their team to focus on more complex tasks. Carefully selected technology can reduce repetitive data entry, improve communications through benchmark notifications and communications, and simplify document and fee collection.
3 - Self-Service
Providing self-service tools enables members to continue chasing their homeownership goals on their own timeline, even when your small team is out of the office. Shortening timelines can also bolster real estate relationships, as quick service helps realtors help your members.
4 - Integration
Seeking tools that integrate seamlessly with a credit union’s point-of-sale (POS) and loan origination system (LOS) helps eliminate extra data entry and simplifies progress tracking and borrower communications.
Tools That Compete Like IMBs
Our suite of solutions can close the gap without increasing headcount, starting with your POS. LiteSpeed provides a mobile-friendly, login-free borrower application that simplifies document management and integrates directly with Encompass®, capturing applications anytime—even after hours.
QuickQual delivers self-serve pre-approval generation, empowering members and real estate agents to act quickly within set guidelines without waiting for a loan officer.
Fee Chaser simplifies upfront fee collection with secure payment links and automated reminders, ensuring critical steps aren’t delayed.
Together, these tools give credit unions “always-on” capabilities, delivering speed, transparency, and convenience that rival IMBs, at a fraction of the price. Members feel empowered, real estate partners trust the process, and loan officers can focus on relationships instead of repetitive tasks.
Conclusion: A Digital, Member-First Future
Competing in the mortgage space isn’t about outspending IMBs. It’s about outsmarting them using targeted, affordable technology to pinpoint and eliminate common points of friction.
The future of credit union mortgage is digital, efficient, and built around providing great experiences for members. Using lightweight tools like LiteSpeed, QuickQual, and Fee Chaser, credit unions can close the mortgage gap, win more deals, and strengthen member and realtor relationships.
Discover how LenderLogix helps credit unions deliver IMB-level experiences without IMB-level overhead.
