Altavera Mortgage Services reports that it saw a 30% increase in demand for its outsourced mortgage services from credit union customers in the third quarter.
The provider of SAFE Act-compliant outsourced residential mortgage origination services attributes the increased demand to growing regulatory compliance costs and an overall increase in origination volume among credit unions.
“Reports early this year indicated that the credit union market was experiencing atypical growth, and our own observations confirm it,” reports Debora Aydelotte, chief operating officer at Altavera, in a release. “Increasingly, medium- to large-sized credit unions are choosing Altavera as their outsource partner because we can deliver the service excellence required to meet member commitments, while significantly reducing the burden of growing origination workloads.”
According to a recent report from CUNA Mutual Group, credit unions experienced a 3.3% year-over-year increase in first-mortgage originations and a 20% year-over-year increase in home equity loans and second mortgages during the first half of 2016.
One credit union that is seeing increased mortgage origination volume and that is using Altavera for outsourced assistance is Colorado-based Ent Credit Union.
“Ent has been active in mortgage lending for decades,” says Jon Paukovich, senior vice president and chief lending officer for Ent Credit Union, in the release. “Having just come off a record third quarter, we anticipate record volume for 2016 and robust demand for mortgages into the foreseeable future.
“We are fortunate to be able to invest in growing and training our in-house staff to handle most of our operations, but with the kind of growth we’ve been undergoing, the option to outsource through Altavera is helpful,” Paukovich adds. “Mortgage talent is in high demand and can be very expensive.”