As the mortgage market continues to move from a refinance market to one where purchases are king, I’ve been watching what Chase Bank has been doing. Chase is generally the second largest home loan lender in the country, hovering around a 10% market share (which is half of what the market leader, Wells Fargo, is doing). This makes Chase’s originations about 25% larger than the entire Credit Union industry. They’ve got a lot of resources and are putting them into mortgage lending.
So what are they doing?
Well, here is one thing (among many others).
I got this email yesterday that touts their expertise. They’ve created a YouTube channel (search on My New Home from Chase) dedicated to videos about the mortgage process. I watched several of these and all I can say is “WOW, that’s impressive!”.
As of today, there are 49 videos. They are all short and to the point – usually less than two minutes. They cover topics like the comparing a 15 year versus a 30 year mortgage, good faith estimate: some things you should know about the GFE, home inspectors: their role in the home buying process.
The folks in the video appear to be Chase actors and customers. Again, these are amazingly well done and all end with the tagline “Learn more about finding and buying a home”.
It’s a great use of online tools and even though they are a for-profit financial institutions, it appears to be quite memberlicious. It uses education to cause people to feel Chase is an expert in mortgage lending and drives potential borrowers to the bank for their home loan. And it’s just one of several new initiatives from Chase all rolled under the “My New Home” umbrella. Chase seems committed to maintaining or even increasing its market share and that should make Credit Unions nervous.
Credit Unions need to learn from this. Individual Credit Unions should be looking at how they are generating new business, increasing their mortgage awareness and growing market share. And Credit Unions should be doing something collectively to reach the same audiences and accomplish the same goals. Otherwise, we might as well chase our members to the nearest Chase office.