Credit unions represent 32% of lenders but only 7% of the purchase market. This report reveals how to close that gap. Learn to trade fragmented vendors for a single-source partner, improving efficiency and member experience. Move from being a reactive lender to a proactive wealth advisor. It’s time to own the journey.
Owning the homeowner journey: A credit union’s guide to purchase market growth
Credit unions were built on a simple idea: people helping people. You have a fiduciary and moral duty to serve the financial needs of your members and your community. For decades, that mission has helped you build deep trust and lasting relationships.
But the mortgage market is moving under your feet. While credit unions have done a great job capturing refinances, there is a massive gap in the purchase market. This is the most vital segment for your long-term growth, and it’s time to close that gap.
To do it, you have to stop being a reactive lender and start being a proactive partner. By pairing better data with the personal touch you're known for, you can give members the modern, digital experience they actually want.
The opportunity gap
The numbers tell the story: credit unions are resilient, but they are underperforming where it matters most. Recent industry analysis shows that while credit unions represent 32% of all mortgage lenders, they only generate15% of total loan volume.
The gap is even wider with purchase loans. In 2024, credit unions captured just 7% of the purchase market. Meanwhile, independent mortgage banks (IMBs) dominated with a 68% share.
Why should you care? Because a purchase mortgage is often the "front door" for new members. These loans drive growth far beyond the initial transaction—new mortgage members frequently open checking accounts and use other products like credit cards and auto loans. If you miss the mortgage, you risk losing that member's long-term loyalty to a competitor who prioritizes convenience.
Why members are leaving
Members aren't leaving because they don't want to work with you; they’re leaving because they want convenience, trust, and value. They expect you to "know" them. When they apply for a mortgage, they want a fast, digital process, but they also want your advice.
Common pain points include:
- Poor customer insights: Losing track of a member's financial situation after the first loan closes
- Vanishing loyalty: Members moving to fintechs or banks that offer better digital tools
- Hyper-personalization demands: Failing to deliver the right offer because the data analytics are too complex
To fix this, you need to be a trusted advisor. This means providing real financial wellness advice instead of just another sales pitch.
The power of one: Why a single partner changes everything
Most credit unions are struggling with "tech debt"—a fragmented mess of vendors where one company handles leads, another does credit, a third manages valuations, and a fourth handles servicing. This isn't just an IT headache; it’s a drain on your growth.
When you consolidate your lending ecosystem under one technology partner like Cotality, you unlock two massive advantages:
- Operational efficiency: Your team stops acting as "data translators" between different systems. With a single-source workflow, you reduce manual entry, eliminate redundant logins, and cut down on the "swivel-chair" effect that slows down loan officers. This lowers your cost-to-originate and lets your staff focus on members, not software.
- A frictionless member experience: Members don't see your back-end systems, but they feel the results. A single-partner approach ensures their data flows seamlessly from pre-qualification to closing. There are no "black holes" where documents get lost or communication breaks down. You deliver a fast, sophisticated digital journey that rivals any fintech, backed by the trust of a local credit union.
A blueprint for growth
To win more of the purchase market, you need a strategy for every stage of the homeowner journey. Here is how Cotality helps you use a data-driven approach to better serve your members:
- Acquire and retain: Move past generic outreach. Tools like OneHomeowner™ keep your brand top-of-mind, while Precision Marketing helps you find members ready to buy before they go to a competitor
- Qualify members: Speed up the process for underwriters and loan officers by accessing credit, Credco™ Credit Reports, and automated verifications in a single workflow
- Protect collateral: Use rapid-response workflows and predictive fraud modules—like LoanSafe®—to mitigate risk
- Smart servicing: The relationship doesn’t end at the closing table. Use Portfolio Intelligence and the DigitalTax suite to anticipate member needs and simplify property tax management
Become the wealth advisor
The mortgage market is changing. You can settle for a small slice of the pie, or you can invest in the tools you need to scale.
By owning the homeowner journey, you aren't just writing loans—you're securing repeat business and helping your members build generational wealth. Nine out of the top 10 credit unions in America choose Cotality because we understand your regulations and your commitment to member ownership.
Stop watching your members walk away to competitors. Ready to transform your member experience and reclaim your share of the purchase market? Schedule a consultation with our Credit Union experts today.
