The challenge

Great Lakes Credit Union (GLCU) holds a portfolio of low-rate mortgages originated for its members during the historically low-rate period of 2018–2022. Many of these members are now effectively “locked in” - hesitant to sell, refinance, or move because doing so would mean giving up a below-market mortgage rate.

"As a result, GLCU faces two related challenges: low-yielding mortgage assets remain on its balance sheet longer than expected, while new loan origination volume slows as members delay their next financial move."

The solution

GLCU partnered with Takara to launch the DREAM program and create a targeted, member-friendly path for eligible low-rate mortgage borrowers.

Through DREAM, selected members receive an offer to settle their mortgage obligation at a discounted amount when they are ready to move. At closing, the loan is assumed through the DREAM structure and supported by replacement collateral held in trust, allowing the existing lien on the property to be released.

In the initial GLCU pilot transaction, the member had an outstanding mortgage balance of $411,982 and received a DREAM amount of $370,784, creating an estimated member benefit of $41,198.

The process gives GLCU a structured way to identify eligible loans, present a clear offer to members, and complete the transaction through a repeatable closing framework.

The impact

DREAM creates rare alignment between member value and credit union economics.

• Member Benefit
  In the initial GLCU pilot, the member received a $41,198 benefit through the DREAM offer.
  
  

• Member Mobility
  The program gives members greater flexibility to sell, move, or purchase their next home without losing the full embedded value of their low-rate mortgage.
  
  

• Member Engagement
  GLCU can re-engage members with a tangible financial offer, not just a marketing message.
  
  

• Portfolio Strategy
  GLCU gains a structured way to address low-yield mortgage exposure and create more balance sheet flexibility.
  
  

• New Origination Recapture: In the pilot transaction, the member financed their next mortgage with GLCU. The DREAM benefit helped the member reduce the principal amount needed on the new loan and buy down points, improving affordability while allowing GLCU to retain and deepen the member relationship.

A rare win-win: members move forward with more flexibility, and the credit union creates new value from a locked mortgage portfolio.

Executive Interview

The following reflects GLCU’s perspective on the DREAM program, the challenge it addressed, the solution it provided, and the experience of bringing it to members.

1. THE PROBLEM

   Can you describe the impact the ‘mortgage lock-in effect’ was having on your balance sheet and your ability to generate new originations?
   Mortgage lock-in was creating friction on both sides. Members with low-rate mortgages were hesitant to move because they did not want to give up a below-market rate. At the same time, those loans remained on our balance sheet as low-yielding assets, while new mortgage activity slowed because members delayed their next move. DREAM gave us a way to turn that challenge into a proactive member engagement opportunity.
   
   

2. THE SOLUTION

   What made you decide that the DREAM program was the right strategic move for your institution right now?
   We were looking for a practical solution to the mortgage lock-in problem. DREAM stood out because it gave us a way to help members unlock value from their low-rate mortgage while also creating a structured path to manage our low-yield mortgage exposure. It felt aligned with our mission: help members move forward while creating a stronger business opportunity for the credit union.
   
   

3. THE EXPERIENCE

   One of the biggest hurdles for CUs is tech integration. How would you describe the experience of launching the pilot with Takara?
   The pilot was designed around our existing workflows, with limited integration required upfront. Takara handled much of the heavy lifting around structure, documentation, and closing coordination. That made it possible to start with a controlled pilot, prove the value, and think about deeper integration gradually as the program grows.
   
   

4. THE RESULT

   How has this program helped you re-engage with your members and unlock liquidity that was previously frozen?
   DREAM gave us a new reason to engage members with a real financial benefit. It opened the door to broader conversations about each member’s next financial need. In practice, that means we can support members with additional tools, whether a new loan, debt consolidation, refinancing strategy, or other services, turning a locked mortgage into a new relationship opportunity.