Written by
Ginger Ellis, Members Mortgage Services, Vice President of Sales and Marketing
gingere@mms.coop | 1.866.441.4447 ext. 273 | mms.coop
Smart CEOs know a balanced strategy of holding (portfolioing) some mortgage loans and selling others is 
financially prudent, risk-aware, and member-centric. Portfolio and secondary-market loans serve fundamentally different purposes.
Portfolio loans provide flexibility to support unique or mission-driven situations: self-employed members, alternative income sources, niche products, and borrowers who need a more personalized approach. These loans reinforce the cooperative mission and deepen long-term member relationships. On the other hand, selling long-term, fixed-rate conventional mortgages creates immediate liquidity and fee income. Selling replenishes funds for new lending, protects Loan-to-Share ratios, and reduces exposure to interest-rate and duration risk. It also helps manage asset concentration and keeps the balance sheet agile during volatile rate cycles.
Mixing portfolio and sold loans provide Credit Unions with the ultimate flexibility. But there has never been a more important time to rethink who you are selling your loans (and members!) to—and what kind of servicing partner you trust with priceless member data.
All Selling Channels are Not Created Equally
The mortgage industry is changing forever.
When PennyMac completes its acquisition of Cenlar and Rocket Mortgage completes its acquisition of Mr. Cooper, three companies will control the servicing for nearly one-third of every mortgage in America.
What’s more, these companies are three of the largest originators in America.
Selling to these conglomerates means your member gets thrown in a vicious cycle where the servicer is the competitor and the competitor is the servicer. Eventually the Credit Union tends to get eliminated from this cycle.
For Credit Unions, who have mission, member loyalty, and trust at stake, this is not a small issue. This is existential. Servicing isn’t back-office work anymore. Servicing is the power center of the mortgage industry. The risk is clear. When your sub-servicer is also one of the largest originators in the country, your members are being targeted by:
- Cross-sell campaigns
- Refinance recapture machines
- HELOC/HE loan outreach
- Deposit and credit acquisition marketing
- Digital ads triggered by servicing data
You are handing your member data and relationship to a national competitor with billion-dollar marketing automation.
Credit Unions Deserve a Partner Who Isn’t Trying to Steal Your Members
Selling mortgages to a lender that provides premium income or best rates but doesn’t offer a protected servicing environment and all-access to your member data should give your Credit Union pause. Your members are not “leads,” they are relationships. And your seller/servicer partner should have one goal in mind: to strengthen the bond between you and your member. When Members Mortgage Services retains mortgage servicing rights on sold loans and services portfolio loans, your Credit Union preserves long-term member engagement through co-branded statements and recapture opportunities while receiving compliant, modern, cost-effective, member-centric servicing for the life of the loan.
Members Mortgage Services helps you maintain the relationship with your members throughout the loan process and after closing, while providing a full array of mortgage products; a customized, best-in-class mortgage origination experience; access to the secondary market with co-branded servicing; and protected portfolio loan sub-servicing.
Members Mortgage Services, LLC is a Midwest mortgage CUSO licensed and authorized in Nebraska, Kansas, Missouri, Iowa, Oklahoma, Arkansas, Colorado, Illinois and Texas. NMLS #760008. Equal Housing Lender.
