The 2020 crisis caused by COVID-19 has really thrown members and credit unions into a frazzle. The combination of restricted branch access, employees working from home, the unemployment crisis, and the uncertainty of how or when it will end have created a unique situation.
As they deal with these evolving times, credit unions are justifiably concerned about revenue and loan defaults. This has many scrambling to keep revenue in the black by reducing costs and cutting budgets.
However, there are some bright spots. For some credit unions, the Paycheck Protection Programhas brought in revenue, and increased consumer lending in the month of May has been promising. But likely the most profitable opportunity right now may just be the mortgage refi boom.
Capturing the Current Mortgage Opportunity
To pad the net income column, credit unions have the opportunity to capitalize on the current needs of their members. I don’t mean this in a self-serving way, but rather in a way that addresses both the needs of the member as well as those of the credit union. These opportunities provide the window to succeed in this crisis. Credit unions owe it to both their members and the membership at large to capture the full opportunity.
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