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Tips for Credit Union Employees – Spotting Upsell Opportunities at the Application Stage

pfl1Credit unions have emerged as real competition for the big banks in recent years. Credit unions are in a unique position because they tend to be a more community oriented type of financial institution, offering membership. Making clients members gives ownership and inclusion as a valued customer. Credit unions have a unique opportunity in the area of refinance mortgages because often they are able to do deals that banks can’t.

Why? This is not because credit unions are subprime lenders, but rather because sometimes the banks’ lending practices are simply just more stringent. Also, while some banks favour CMHC, many credit unions use other insurers which provides more opportunity on the approval side.

If you work in lending at a credit union then you know that you see clients both at the branch level, and, if your organization permits, you may also do deals submitted by brokers. Generally a deal originates because there is a need. The customer is looking for money because they need to do something.

That need may not be the only opportunity or make the best financial sense for the client. Almost all applications end up being different than originally submitted once underwritten because it is simply too difficult to guess what a home is worth or what could be owing on a mortgage.

The underwriting process occurs after the application is submitted and the preliminary expectation has been set with the client. They key is realizing that the most potential exists at the application stage! At the application stage:

  • Your client is freshly in contact with you
  • You can see their credit reports and debts
  • You know what they want the money for

Two simple things that you can do when you take the mortgage application that can help you spot an upsell opportunity at the application stage are:

1. Request an Automated Valuation Model (AVM) to validate home value

2. Check registered mortgages and liens against the home

Both are critical because they will ensure that you have an accurate estimate of the client’s home equity to determine if there is an opportunity to offer a larger mortgage or upsell a line of credit or other product. You are then positioned to structure your deal properly from the get-go so when you submit it to underwriting to be approved, it is rock solid!

Don’t miss any opportunity for an upsell. Start off on the right foot and get deals approved that bring the most value your way.

Purview For Lenders has the tools that make identifying upsell opportunities easy.

Find out more by visiting today.



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