Member-owned lenders and insurers rebuild their systems as mortgage rates climb back to 7.4%

How the business works

Four kinds of firms lend and insure in four different ways

Outsiders lump these firms together as "financial services", but each earns money from a different customer under a different owner. Credit unions earn the spread between loan rates and the dividends they pay members. Mortgage lenders earn a gain when they sell a loan, insurers an underwriting profit plus investment income, and wholesale brokers a commission paid by the insurer.

What they share is ownership: most of the firms in this report answer to members, policyholders, or a family rather than to stock market investors. Each row below is one business, and the leaders on our list run firms in all four.

Each business reports size differently: credit unions in members and assets, lenders in loan volume, insurers in premium, and wholesalers in premium placed.

Member and policyholder ownership changes the math

A credit union that earns more can pay members higher dividends, charge lower loan rates, or keep the money as capital; it can't pay shareholders, because it has none. Credit unions earned $18.8 billion in 2025, up 31.5%, and held capital equal to 11.26% of assets. NCUA Mutual insurers work the same way, so a mutual's chief executive answers to a board elected by policyholders rather than to the stock market. That gives these leaders room to spend for years on systems without a quarterly earnings call. EMC, a mutual, spent about a tenth of a year's premium rebuilding its core. Insurance Business

Excess and surplus insurance is where wholesalers work

When a risk is too unusual or dangerous for a regular, or admitted, insurer (a wildfire-exposed property, a trucking fleet, a new technology), a retail agent takes it to a wholesale broker. The broker places it with an excess and surplus (E&S) insurer, which is free to set its own rates and terms. That market reached $143.3 billion in premium in 2025, 12.9% of all property and casualty premium and 27.5% of commercial lines. Insurance Business

The economics in 2026

Mortgage rates back above 7% threaten a lending recovery that began in 2024

The first chart shows how mortgage lending followed rates through and after the pandemic. The second shows the credit union movement shrinking in number while growing in members.

Three more pressures sit under the numbers:

• Credit unions are profitable, but growth goes to the biggest. Loans grew 4.9% in the year to June 2026, and members reached 146.1 million. NCUA But the median credit union lost 0.6% of its members. NCUA
• The E&S boom is slowing. Premium in the 15 states with stamping offices, which record E&S policies, grew 2.8% in the first half of 2026, after 13.2% a year earlier, and property premium fell 13.7%. Business Insurance AM Best moved its outlook for the E&S market to stable from positive in November 2025. Insurance Business
• Insurers had a strong 2025. The industry's combined ratio, claims and expenses as a share of premium, was 92.9, the best in more than a decade, by one count. Insurance Journal That gives mutuals capital to spend on systems, but rates on property insurance are already softening.

What is changing

Lenders and insurers are changing how the work gets done in five ways

The firms changing most are rebuilding the systems under the work instead of adding apps on top of them. In one survey, about 42% of credit union leaders said they used AI in specific areas, but only 8% used it across the organization. PYMNTS

From 2022 to 2026, the changes fall into five themes. The first three match the three groups of leaders on our list, and each cuts across credit unions, lenders, and insurers.

The innovators

Six leaders on our list are rebuilding how their lenders and insurers work

Six leaders in these businesses are among The Originals. Each has made a dated, costly change to how the work is done. The highest scorers are April Clobes of MSUFCU (7.0), Mike Kortas of NEXA (6.2), and Scott Jean of EMC (6.2).

Building their own AI

Mike KortasOn the list · 6.2 of 10

Founder and Executive Partner, NEXA Lending (NEXA Mortgage) · Mesa, Arizona; mortgage brokerage he founded and has owned alone since July 2026, with 4,122 sponsored loan officers in October 2026; handed the CEO title to Geri Farr in September 2026

Mike launched NEXA's own AI tools for loan officers in January 2026. HousingWire He has turned a pure brokerage into a hybrid that also closes loans in its own name and services them through evoLend, HousingWire and in August 2026 NEXA bought UMortgage, adding 246 loan officers. HousingWire In September he gave up the CEO title, saying "If removing my title helps us grow faster, I will remove the title." HousingWire

“What we're rolling out over the next few weeks alone will change how loans are originated, marketed, and closed” source

Ask aboutNow that NEXA also services loans, how does the loan officer's job change after closing, and what does AI do in it?

James SchenckOn the list · 4.8 of 10

President and CEO, PenFed Credit Union · McLean, Virginia; member-owned credit union with about 2.8 million members, $29.2 billion in assets, and about 2,300 employees; CEO since 2014

James cut 569 jobs, about 14% of PenFed's staff, in the fourth quarter of 2022 as lending fell. CU Times Since then he has moved branches, call centers, operations, and PenFed's app onto one Salesforce platform, replaced more than 600 tools, and put AI agents beside staff in member service and IT. Salesforce

“I want to serve 6 million members as easily as we're currently serving 3 million members with this core team of employees.” source

Ask aboutWhich work did the AI agents take over first, and what do the people who used to do it do now?

Rebuilding the core systems and the org chart

Scott JeanOn the list · 6.2 of 10

President and CEO, EMC Insurance Companies · Des Moines, Iowa; policyholder-owned mutual founded in 1911, with about 2,100 employees and $2.05 billion in 2024 premium; CEO since 2020

Scott ran EMC's six-year rebuild of its whole core (policy, billing, claims, portals, and data) at once, at a cost of about a tenth of a year's premium. Insurance Business He took EMC out of the reinsurance business in 2022, EMC cut 17 branches to 10 regions with specialist underwriting units in 2025, EMC and agreed in December 2025 to sell EMC Life while keeping the insurer mutual. EMC

“We selected Guidewire and Guidewire Cloud to help EMC transform into a digital company that can easily adjust to industry disruption and evolving customer expectations” source

Ask aboutWhat did rebuilding everything at once let EMC do that a step-by-step upgrade wouldn't, and what would he never do again?

Danny KaufmanOn the list · 3.4 of 10

President, Burns & Wilcox; Group Co-President, H.W. Kaufman Group, Burns & Wilcox and H.W. Kaufman Group · Farmington Hills, Michigan; family-owned wholesale insurance broker and underwriting manager doing business in 94 countries; president since 2022

As chief operating officer, Danny led the launch of practice groups of brokers who specialize by line of business. Burns & Wilcox Burns & Wilcox began overhauling its digital systems in 2020 and now builds AI tools for its brokers and underwriters, Insurance Business and its London-based arm moved onto Novidea's cloud broker system in May 2026. FinTech Global He is also co-president of the family's H.W. Kaufman Group. Burns & Wilcox

“We're really the only one at our scale that's not only privately owned, but also family owned and operated” source

Ask aboutAs big retail brokers buy each other and go straight to insurers, what keeps a family wholesaler necessary?

Launching new brands, banks, and charters

April ClobesOn the list · 7.0 of 10

President and CEO, Michigan State University Federal Credit Union (MSUFCU) · East Lansing, Michigan; member-owned credit union with about $7.5 billion in assets and more than 1,200 employees; CEO since 2015

April built separate digital brands for each stage of life: Collegiate for students and AlumniFi for graduates, each designed to compete with online banks. Callahan & Associates In August 2023 she agreed to buy two Illinois banks, McHenry Savings Bank and Algonquin State Bank, taking the credit union into the Chicago suburbs. Banking Dive In 2025 AlumniFi bought the naming rights to Detroit City FC's new stadium. CUToday

“If you don't have a path forward to grow, it's harder to be relevant and to sustain.” source

Ask aboutWhich did more for member growth, buying banks or building digital brands, and what did each cost?

Terry RasmussenOn the list · 5.3 of 10

President and CEO, Thrivent · Minneapolis; member-owned fraternal financial services firm with 2.4 million clients, more than 4,500 employees, and $212 billion under management or advice

Terry won an industrial loan company charter from the Federal Deposit Insurance Corporation (FDIC) in June 2024, the first since 2020, to turn Thrivent's credit union into a bank. Banking Dive Thrivent Bank opened online in June 2025. Thrivent She has said that when she became CEO, people didn't know Thrivent was a financial services company. Fortune

“For over 120 years, Thrivent has provided purpose-based advice and now we're expanding in banking to grow and serve even more people” source

Ask aboutWhat has the bank changed for members that the credit union couldn't do?

Three leaders outside the list are making similar moves

Each of these leaders runs a member-owned, mutual, or founder-led firm and has made a change worth asking about.

The wider field

Public giants and software vendors set the terms the member-owned firms react to

A few large firms and vendors shape what the leaders above can do. They set the price of a loan, the pace of consolidation, and the systems everyone else rents.

Large firms and buyers

• Rocket Companies Public; bought Mr. Cooper in October 2025 and services loans for about 10 million clients.
• UWM Public, controlled by the Ishbia family; lends only through brokers and works with more than 13,000 broker firms.
• Navy Federal Credit Union The largest credit union, with $204 billion in assets.
• CrossCountry Mortgage Founder-owned lender that outbid UWM for Two Harbors in 2026 to own its loan servicing.
• Global Federal Credit Union Closed its purchase of First Financial Northwest Bank in April 2025.
• Fairway Home Mortgage Signed an enterprise partnership with OpenAI in September 2025.

Companies selling the tools

• Salesforce The platform and AI agents under PenFed's member service.
• Guidewire Core policy, billing, and claims systems for insurers, including EMC; now sells AI assistants on top.
• Corelation KeyStone core for credit unions; converted Mountain America in 2026 and signed SECU.
• Tidalwave AI assistant for mortgage loan officers; NEXA is its largest client.

How customers find the firms

Brokers, lead sellers, dealers, and agents take a share of each customer

Each business pays a different middleman. Wholesale lenders pay mortgage brokers. Lenders pay lead sellers for each name. Credit unions let car dealers keep part of the loan rate, and insurers pay independent agents and wholesale brokers a commission on each policy. A member who joins through an employer or church costs no middleman anything.

A few owners control the channels

• UWM and Rocket The two largest lenders by loan count; UWM did 42.5% of broker-channel loans in the first nine months of 2025.
• Equifax, Experian, and TransUnion The credit bureaus whose trigger-lead sales the 2025 law restricted.
• Amwins, Ryan Specialty, and CRC The largest wholesale brokers; two are backed by private equity and one is public.
• Fiserv and Jack Henry Public companies that supply the core systems of many credit unions.
• Origence Owned by credit unions; runs the dealer network for their car loans.

What it means for the firms

• Brokers are a cheap way to reach borrowers, and lenders compete for them. UWM argues that "the fastest, cheapest and easiest way for a borrower to obtain a residential mortgage is through the wholesale channel". UWM NEXA, the mortgage brokerage on our list, is adding its own servicing so it keeps the borrower after closing. HousingWire
• Car loans depend on dealers. Dealers can mark up a credit union's rate and keep the difference; federal consent orders in 2015 capped markups at 1.25% on loans of five years or less. Goodwin Credit union car loans fell 0.3% in 2025, to $480.1 billion. NCUA
• Big retail brokers are squeezing wholesalers. As private equity buys up agencies, the largest ones want to deal directly with insurers, which cuts out the wholesale step. Insurance Business Agencies that underwrite for insurers, known as managing general agents (MGAs), grew about 19% in 2025, to roughly $94 billion. Reinsurance News

Rules for the middlemen are changing

Three leaders run the main channels

Scott Purviance runs Amwins and Tim Turner runs Ryan Specialty, two of the largest wholesale brokers, which compete with Burns & Wilcox. Tony Boutelle runs Origence, which connects car dealers to credit unions.

Scott Purviance

CEO, Amwins · Charlotte; wholesale insurance distributor that calls itself the largest independent one in the US, about 40% owned by employees after a $1 billion recapitalization in 2023; CEO since 2018

Scott led Amwins' $1 billion recapitalization in 2023, which brought in private equity investors while employees kept a large stake. Amwins In May 2026 Amwins bought NARDAC to build an energy, power, and infrastructure practice. Amwins

“For us to consider a deal, it needs to add a capability to our firm, and there has to be a strong cultural fit” source

Ask aboutAs retail brokers grow big enough to go straight to insurers, what can a wholesaler still do that they can't?

Tim Turner

CEO, Ryan Specialty; Chairman, RT Specialty, Ryan Specialty · Chicago; public wholesale broker and underwriting manager founded by Patrick G. Ryan; CEO since October 2024

Tim reported second-quarter 2026 revenue of $916.6 million, up 7.2%, and bought back $260 million of stock. Ryan Specialty Ryan Specialty built its own underwriting workbench, which it says lets property staff produce 11% more quotes. Coverager

Ask aboutWith property prices falling, where does a wholesaler's growth come from in 2027?

Tony Boutelle

President and CEO, Origence · Irvine, California; lending technology company owned by credit unions, which runs CUDL, the network that sends car dealers' loans to credit unions

Tony runs the main network linking car dealers to credit unions; Origence says it has helped credit unions originate nearly $600 billion in loans. Origence via KDH News

Ask aboutAs carmakers' own banks win deposit insurance, how do credit unions keep the dealer's business?

Trade-offs

Six trade-offs divide the leaders you'll meet

Most leaders on our list have picked a side on several of these. In our reading, asking which side they picked, and why, gets to their strategy faster than asking about trends.

Before a first conversation

Leaders want to talk about rates, consolidation, regulators, and their core systems

In late 2026, mortgage lenders talk about rates back above 7% and the end of trigger leads. Credit union leaders talk about mergers, bank purchases, a changed NCUA board, and banks' push to end their tax exemption. Insurers talk about slowing E&S growth, softer property prices, and the cost of replacing core systems.

Seven mistakes mark an outsider

• Calling credit unions small. They hold $2.5 trillion in assets and have 146 million members; Navy Federal alone has $204 billion. NCUA Bankrate
• Saying credit unions don't care about profit. They earned $18.8 billion in 2025; the profit becomes capital or member benefits instead of shareholder returns. NCUA
• Calling mortgage brokers a dying middleman. About 2 in 10 loans come through brokers, almost double the 2014 low. UWM
• Assuming lenders make big money on each loan. Independent lenders earned $785 a loan in 2025, and the bottom fifth lost money. MBA
• Treating "mutual" as small or old-fashioned. Mutuals write about 40% of property and casualty premium. Agency Checklists
• Calling E&S insurance unregulated or weak. E&S insurers set their own rates, but 98% hold AM Best ratings of "a-" or better, against 85% of all property and casualty insurers. AM Best
• Calling Thrivent a social club. It's a regulated insurer, and now a bank owner, with $212 billion under management or advice. Thrivent

Eleven questions get these leaders talking about the work

1. Rates went back above 7% in October. What did you change the last time rates jumped, and what would you do differently now?
2. Which job in your firm has AI changed most so far, and which did you expect to change that hasn't?
3. If you replaced a core system, what did you learn that you'd tell another CEO before they start?
4. (Credit union) Do you expect to be a buyer or a target in the next five years? What scale do you think you need?
5. (Credit union) What did your members get from your last merger or bank purchase that they couldn't get before?
6. (Credit union) Banks want your tax exemption ended. How do you show members what they get from it?
7. (Mortgage) Trigger leads were cut off in March. Where do your new borrowers come from now, and how many of them do you own?
8. (Insurer) What does being a mutual or fraternal let you do that a stock company can't, and where does it hold you back?
9. (Wholesale) As big retail brokers buy each other and go straight to insurers, what keeps your firm necessary?
10. How many of your customers come from your own marketing and members, and how many through channels you pay?
11. What's one thing you rebuilt in the last three years that you'd do again, and one you'd undo?

Where they gather

Six events bring these leaders together before June 2027

The Governmental Affairs Conference draws credit union chief executives to Washington. The MBA's independent mortgage bankers conference draws lender owners, the Wholesale & Specialty Insurance Association (WSIA) Underwriting Summit draws wholesale brokers, and the American Fraternal Alliance gathers fraternal insurers.

Glossary

Twenty-four terms come up in the first ten minutes

Admitted insurer

An insurer that files its rates and policy forms with the state and is backed by the state's guaranty fund.

Combined ratio

Claims plus expenses as a share of premium; under 100 means the insurer made money on underwriting.

Core system

The system of record for accounts and loans at a credit union, or policies, billing, and claims at an insurer.

Correspondent lender

A lender that closes loans in its own name and then sells them to a larger lender.

CUSO

Credit union service organization: a company owned by credit unions that sells them shared services.

Dealer reserve

The markup a car dealer adds to a lender's rate and keeps.

Demutualization

Converting a mutual, owned by its policyholders, into a stock company.

E&S (excess and surplus) insurance

Insurance for risks regular insurers won't take, sold through licensed surplus lines brokers, with freedom on rates and terms.

Field of membership

The group a credit union may serve, such as an employer, a community, or an association.

Fraternal benefit society

A member-owned insurer with a common bond, local chapters, and a charitable mission, exempt from federal income tax.

Gain on sale

A lender's profit from selling a new loan to Fannie Mae, Freddie Mac, or other investors.

ILC (industrial loan company)

A state-chartered bank with FDIC deposit insurance that a non-bank company, such as Thrivent, can own.

Independent mortgage bank (IMB)

A lender that doesn't take deposits and funds loans to sell them.

LO comp rule

The 2011 rule that bans paying loan officers more for higher rates and stops brokers being paid by both lender and borrower.

MGA (managing general agent)

An agency that underwrites and binds policies on an insurer's behalf.

MSR (mortgage servicing right)

The right to collect a loan's payments for a fee; keeping it keeps the borrower.

Mutual insurer

An insurer owned by its policyholders, with no shareholders.

NCUA

National Credit Union Administration: the federal regulator and deposit insurer for credit unions.

Net worth ratio

A credit union's capital as a share of its assets; 11.26% across the system in 2025.

Shares and dividends

A credit union's words for deposits and the interest paid on them.

Surplus

An insurer's capital: what's left after setting aside money for expected claims.

Trigger lead

A credit bureau's alert, sold to rival lenders, that a person has applied for a mortgage; mostly banned since March 2026.

Wholesale broker

A broker who places risks for retail agents with E&S insurers and Lloyd's.

Wholesale channel

Lending through brokers, who take the application while the lender funds the loan.

Read more

Three pieces explain AI, core rebuilds, and the E&S market in 2026

• PenFed's move to one platform and AI agents (Salesforce) How the fifth-largest credit union consolidated more than 600 tools and put AI agents beside its staff, in the vendor's telling.
• EMC's six-year core rebuild (Insurance Business) Why a mutual insurer replaced every core system at once, and what it cost.
• Surplus lines hit a record (Insurance Business) AM Best's 2026 report on the E&S market and who places its premium.