Mortgage Growth Without the Overhead for Banks & Credit Unions

The mortgage landscape has changed dramatically over the last decade, especially for community banks and credit unions.

Increased regulations, evolving compliance requirements, expanded disclosures and heightened risk have made mortgage lending more complex and resource-intensive than ever before.

Why Mortgage Lending Has Become Harder for Some Community Banks and Credit Unions

For many smaller institutions, keeping pace can feel overwhelming. Today, mortgage lending requires constant monitoring, specialized expertise, and dedicated infrastructure. That’s where strategic third-party origination (TPO) partnerships come in.

At Gershman Mortgage, mortgage lending is all we do. And because it’s our sole focus, our finger is always on the pulse of regulatory changes, product updates, and market dynamics. By partnering with Gershman, community banks and credit unions can continue offering mortgage solutions to their customers while avoiding the full operational and compliance burden of managing it in-house. In this blog, we’ll explore how a TPO partnership can support your institution, and what to consider when selecting the right partner.

The Compliance and Operational Pressures Facing Community Banks and Credit Unions Today

Rate volatility, staffing costs, and technology investments all contribute to the ongoing challenges smaller institutions face when offering mortgage loans. However, compliance is often the most significant pressure point for community banks and credit unions.

Mortgage regulations today are far more complex than they were even 10 years ago. Many smaller financial institutions don’t have a dedicated mortgage compliance officer, yet they’re expected to meet the same regulatory standards as large national lenders. The risk – both financial and reputational – can be substantial.

By entering into a TPO partnership with Gershman, you can relieve that strain and shift much of that regulatory and operational risk off your operation.

The Cost of Sitting on the Sidelines

When banks and credit unions pull back from mortgage lending – or avoid it altogether – they often miss more than just loan revenue.

Mortgage lending is a powerful driver of deeper, longer-term relationships. When institutions don’t offer mortgage options, customers are forced to look elsewhere, often to another bank or credit union that provides a broader suite of products. That initial mortgage relationship can easily lead to future auto loans, HELOCs, deposit accounts, and long-term loyalty.

Expanding Access With FHA, VA, and USDA Loan Programs

There’s also a major missed opportunity around government loan programs. Many community institutions offer conventional mortgages but stop short of offering FHA, VA, or USDA loans due to perceived complexity. Without a TPO partner, these programs can feel daunting. But with Gershman by your side, they become a strategic advantage.

Government loans shouldn’t be viewed as a last resort – they can actually give your institution a competitive edge. And for many borrowers, these programs are the difference between buying a home or continuing to rent.

Scaling Mortgage Lending Without Scaling Headcount

One of the biggest advantages of a TPO or correspondent partnership is efficiency. By working with Gershman, you can:

• Avoid hiring additional staff and start with the team you already have
• Eliminate upfront technology costs, including loan origination systems
• Access secondary market expertise without needing to service loans yourself
• Receive marketing support, including branch-level flyers and materials
• Get hands-on support if issues arise during or after the loan process

Simply put, your community bank or credit union gains the benefits of a full-scale mortgage operation – without building one from scratch.

Maintaining Control of the Borrower Experience With a TPO Partner

A common misconception about partnering with a TPO is the fear of losing control over the borrower relationship. In practice, the opposite is true.

The borrower remains your customer throughout the entire process. All communication including phone calls, emails, and updates flows through your institution. Gershman does not market to or solicit borrowers directly. Even required e-consents and disclosures are managed in a way that supports, not disrupts, the borrower relationship.

Our role is to work behind the scenes, ensuring loans are originated, underwritten, and closed accurately and on time – while your bank or credit union remains front and center.

Selecting the Right TPO Partner

Before choosing a TPO or correspondent partner, your leadership team should ask several key questions:

• Is the TPO stable and experienced?
• What loan programs do they offer?
• Are their rates competitive in our market?
• Can they manage our volume?
• What are their average turn times?
• Will we collaborate with the same team consistently?
• Do they underwrite in-house?
• What happens – and what do we owe- if a loan doesn’t close?

These questions matter, and the answers your leadership team uncovers will directly impact both your profitability and borrower satisfaction.

From Decision to First Mortgage Loan: What’s the Timeline?

Once paperwork is complete, most institutions can expect to move from making a partnership decision to closing their first loan in as little as one week. There’s no long ramp-up period, no heavy upfront investment – just a clear path to offering mortgages with confidence.

The Bottom Line: Mortgage Growth for Community Banks and Credit Unions

Mortgage lending remains one of the most effective ways for community banks and credit unions to grow relationships, increase wallet share, and improve profitability. With the right partner, it doesn’t have to be risky, costly, or complicated.

With Gershman Mortgage as your TPO partner, you can offer a full suite of mortgage solutions, support your customers through every stage of homeownership, and position your institution for long-term growth without taking on unnecessary risk.

Ready to explore a smarter way to offer mortgage lending? Let’s talk about how a TPO partnership with Gershman Mortgage can help you grow relationships, expand your product offering, and reduce operational risk without adding complexity. Connect with our team to start the conversation. Email Patrick Fox at Pfox@gershman.com. Call 1-800-457-2357 or click here today.

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At Gershman Mortgage, communities, families, and homes are at the heart of what we do. Built on the core values of honesty, integrity, entrepreneurial spirit, and customer-first service, we’re committed to providing an exceptional homebuying experience. Our goal is simple: to exceed expectations and build lifelong relationships. NMLS #138063 16253 Swingley Ridge Road Suite 200 Chesterfield, MO 63017 (800) 457-2357 Equal Housing Lender.

Serving borrowers in: Alabama, Arkansas, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin.

Authored by Patrick Fox, Vice President of TPO at Gershman Mortgage. NMLS #2599298