Why Credit Unions Need to Update HELOC Workflows Now

In today’s mortgage market, every loan and every borrower relationship matters. Traditionally, it’s markets like this that have given credit unions and community banks a leg up on the competition. But it may not work that way this time.

Homeowners, fresh from successive waves of refinancings, are more attuned than ever to state-of-the-art digital lending experience. They expect every mortgage transaction to be a fully digital and satisfying experience.

The problem is that most HELOC workflows have not been updated in ages because, until recently, the HELOC activity has been minimal.

Forcing mortgage borrowers to go from the "superhighway" they’ve become accustomed to over to the "farm road" of the past will do more than depress the lender’s Net Promoter Score, it may lead to a permanent loss of that customer and their multi-product relationships.

For this reason, it’s time for credit unions to renovate their HELOC workflows. Fortunately, that’s easy to do with Revvin.

A great opportunity for credit unions

In March, existing home sales fell 2.4%, according to the National Association of Realtors. While this may seem like bad news for HELOCs, those homeowners who’ve been in their homes for a few years are still sitting on substantial home equity growth - the equity that owners hold in those properties increased by about $1 trillion since the fourth quarter of 2021, according to CoreLogic. Together with their very low first mortgage rates - %% of outstanding mortgages are under 3% - finding a HELOC is becoming a no-brainer for any homeowner seeking to monetize some of that appreciated equity. That money is just sitting there. Homeowners need it, but they can’t access it through the loan originator’s favorite tool (the cash out refi) because they are tied down by an extremely low interest rate on their first mortgage. No one wants to double their monthly mortgage payment just to get at their equity.

But, if borrowers don’t access it now, there will likely be less available to them in the future.

Why credit unions must act now

Many of these HELOC borrowers will come to the credit union or community bank to tap into their home equity. This is where they have traditionally come for these types of loans as many other institutions don’t offer them.

But they are coming in with high expectations. If the credit union can meet them, they will strengthen these relationships. However, no strategy for building good client relationships will work if you can’t offer every borrower a great experience. 

For credit unions that are still relying on outdated technology and older workflows to originate these loans, this exposes them to high risk.

But it doesn’t have to.

In recent years, the rise of no-code digital lending platforms has made it easier than ever for people to apply for HELOCs and other types of loans online. These platforms use advanced algorithms and machine learning to automate the lending process, making it faster, more efficient, and more convenient for borrowers.

This is the HELOC experience borrowers are demanding. Renovating your credit union HELOC workflow to accommodate them is easy.

Renovate your HELOC workflow to win more business

By offering HELOCs on a no-code digital lending platform, credit unions can meet the increased demand for home equity loan products in a manner that allows them to satisfy their members and build stronger relationships.

With a customer experience engine like Revvin, setting up a fully customized HELOC workflow for your members is easy. Revvin’s built in workflows include templates built on industry-leading UI/UX and includes more than 60 built-in third-party integrations credit unions can embed into their own customized workflows.

The credit union can quickly make changes via the platform’s flexible and agile low-code/no-code architecture to enable quick and cost-effective customization. Flat-fee pricing makes it more affordable than ever before with month-to-month instead of long-term contracts.

Credit union members apply for a HELOC online, the platform quickly assesses their creditworthiness, determines their existing home equity, and then provides them with an instant loan offer. No loan officer required.

By renovating the credit union's HELOC lending process and providing a better customer experience, these institutions will again have a competitive advantage over all other institutions and can build stronger member relationships.

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