Things are Getting Interesting

Credit Unions Must Adjust to the Current Market or Fall Behind

By Peter Benjamin, CMB

I don’t always follow the advice of philosophers or ancient seers, but every now and then a phrase or idea comes along that smacks me on the back of the head to get my attention. These days that phrase is what’s purported to be the ancient Chinese blessing (or maybe a curse): “May you live in interesting times.”

Those who research such things claim to never have found a direct translation from Mandarin of the phrase, which started showing up in the general English lexicon in the mid-20th Century. But the inference is clear. The phrase is neither a blessing nor a curse, but rather an observation by someone acutely aware of life’s ironies. The robust economic growth following World War II led to some very interesting times, but then so did the Great Depression that preceded the war. The ultimate meaning of the phrase, it would seem, is in the mind of the beholder.

I think we’d all agree that, as credit union mortgage lenders, some very interesting times lie ahead for us in 2023. We are looking at a still-volatile economy and a combative political environment. As the Fed kept raising rates, mortgage rates followed suit. Granted, they have leveled off a bit; albeit higher than where they’ve been over the past 20 years and most certainly when compared to recent years. All of this made the dream of homeownership increasingly difficult for first-time buyers. Add to that the shortage of housing inventory and you have a marketplace that’s as difficult for credit union home loan professionals as it is for credit union members.

Diversity on both sides of the lending desk continues to increase, but slowly compared to the overall population. Government agencies, including NCUA, look for ways to help grow the industry, but even they can reach only so far with their influences. And just to make things even more interesting, nonbank mortgage lenders continue to disrupt your relationship with your members, and some of them have started to act like credit unions themselves: originating Home Equities and doubling down on community-based lending. Nothing new here — as a segment of both the credit union and mortgage industries, we have always had to try a little harder — but still interesting times all the same. The new market is most certainly here, has been for a while, and it’s showing every sign of getting more, um, interesting as we go along.

ACUMA’s role is one of leadership in the industry, and we view every opportunity to meet with and work with our members as an obligation to serve. It’s our goal to bring the best minds together and provide you with the most critical information at every touchpoint possible to help you cope with current trends (or should I say interesting times?) Pipeline magazine falls clearly into this category.

The issue focuses on finding ways to target demands of the new market — however this new market may be defined — and our authors once again have risen to the challenge. You will find economic analyses, methodologies for increasing service to diverse markets, new ways to mine the talents existing in your staff, and more. Having sat in your seat myself, I read this issue with excitement and all of these articles gave me a newfound energy to want to roll up my sleeves. I am more than proud of the creative thinking and profound tactical strategies that appear in this issue.

Every single article has something to offer readers seeking new ways to serve their credit union members during these very uncertain times, to help their mortgage and home equity lending departments survive and thrive, and to even improve the environment in which we live. If you can’t find a few strategies that you can apply at your credit union, then let’s keep trying to find one (call or email me anytime). But I hope you really try, because things don’t promise to get any easier (you know…interesting times and all).

In fact, the current “times” might harbor an advantage in the way that it forces you to see situations in new ways and apply new strategies to longtime issues that have faced your institution. No one likes to be forced out of his or her comfort zone, but we can’t really grow until we are.

Those of you who joined us for our 2022 Annual Conference in Las Vegas and were fortunate enough to sign up for the pre-conference workshop, “Transform Your Life and Work: A Journey to Becoming Better”, may best understand how to maximize the current changing environment. (See coverage page 43) The workshop was hosted by one of America’s greatest thinkers, Blaine Rada, who recounted his 500-mile journey on foot across the top of Spain on the Camino de Santiago. The pilgrimage, well-known outside the U.S., was as much an inner journey as it was an exercise in personal strength and stamina, and he uncovered some remarkable realizations that may apply to our journeys through 2023.

“Adversity is the teacher,” Rada told his audience. “The effect you have on others is the most valuable currency you can possess. Action leads to clarity, enabling you to accept and adapt.”

Our clinging to comfort and familiarity in times of significant change can be one of our biggest mistakes, he added. That was true for this pilgrim on his journey and also speaks to the way all of us would like to face the coming year. Discomfort doesn’t always lead to success, but it fosters new ways of thinking that may better provide you with the alternatives you need to surmount the challenges your credit union faces in 2023.

“The Taoist philosopher Lao Tzu said, ‘When I let go of what I am, I become what I might be,’” Rada added. Once we open the door to ways of thinking, we’ll likely find new paths to accomplish our professional and personal goals. And if that doesn’t make for interesting times, then nothing will.

Meet Our Staff

Those of you who attended our Las Vegas conference had the chance to meet ACUMA’s two new staff members. For those who couldn’t attend, I’d like to introduce them to you now.

Justin Hawkins is our new Director of Marketing and Communications, a position similar to ones he’s held at several other organizations. He also served as a Hospital Corpsman Petty Officer Third Class in the United States Navy and saw action as a medic in the Middle East.

Camryn Hinton is our new Associate Director of Member Relations. A graduate of the University of Delaware, she has experience working in a credit union mortgage lending department. This is her first trade association position.

Please welcome them when you see them!