A quick look over Navy Federal Credit Union’s most recent mortgage report for March shows not only has it used this resting potential to its potential, but it is setting record volume levels.
The credit union recently announced mortgage closings surpassed $1 billion in March, the best month in the credit union’s history.
Katie Miller, vice president of mortgage lending, said in an interview with HousingWire that the biggest opportunity for purchase volume is first-time homebuyers. She explained that since so much time has passed since the crisis, first-time buyers have moved up in their careers and ready to put their money in an investment.
Navy Federal, for it's part, is ready for the new members to open an account and get started.
Currently, nearly 60% of the credit union's mortgage volume can be attributed to purchases, compared to last year’s 55%.
“From our perspective, we said we know we are serving these members today. This is the largest part of our purchase closing,” said Miller. “It is really just about working with our members and first-time borrowers and helping them understand their options.”
Miller added that the biggest challenge for borrowers right now is the lack inventory.
So, while their loan officers do a fantastic job, it doesn’t help if the borrower can’t secure a home, she said.
Meanwhile, she also noted that the biggest hurdle for first-time buyers is lack of a substantial down payment. But that's a problem with a quick solution for members: Have the conversation with a loan officer about what they can work out.
For example, Navy Federal offers a conventional 100% financing fixed payment option with no private mortgage insurance.
Additionally, Miller has created a specialized program for loan officers to specifically aide the needs of first-time homebuyers.
"They don't have the cash to make large down payments, and they don't know where to start — we're here to help from first call to close," said Miller.
