Currently, the average age of a credit union member is in the late 40s, according to the World Council of Credit Unions. Millennials, however, are joining the credit union market more and more each day. Most credit unions think of student loans in the Millennial market. As in any other economy, Millennials will need all the financial products and services other people have always desired. Millennials have the largest purchasing power and desire to keep up with what is trendy today. The question is, how do you reach and connect with them?
The growing Millennial market is creating a demand for home mortgages. Owning a home versus renting is appealing to Millennials more and more as they come of age. Plus, there are different home mortgage options on the market that make lending much easier than before (some say that no matter how low the rent is in Kentucky, there are no doubt plenty of Millennials who would prefer to live in the trendiest shoebox in New York City than in a mansion in Kentucky.) Oak Tree has great forms packages for each Millennial’s lending needs. For instance, we offer consumer lending forms for both open-end and closed-end home equity lending. This is a great way for Millennials to obtain a home loan that differs from traditional home mortgages.
A 2014 survey by Fannie Mae found that the majority of Millennials consider owning a home more sensible than renting for both financial and lifestyle reasons — including having control of living space, flexibility in future decisions, privacy and security, and living in a nice home. Many young renters in the survey appear to be on the brink of home buying, and 49% said their next move would likely be to own a home. Who wouldn’t want their own home? Millennials are no different, and see the long-term value in owning a home.
Get your credit union ready for processing Millennial loans, and create awareness in the different financing options your credit union offers. Our forms packages have everything needed, including a streamlined application and all proper disclosure forms. As always, our forms are compliant and up to date, incorporating all state and federal guidelines.