PORTLAND, Ore. - It's not the first credit union in the state to partner with Credit Union Direct Lending, but it is the largest. Portland Teachers CU went live on the CUDL system May 16. Prior to shaking hands on its alliance with CUDL, Portland Teachers depended on traditional delivery channels in its nine-branch network to generate auto loans. The $900 million credit union's loan officers were the primary production channel for handling pre-approved car loans and managing the traffic generated by the two car sales-a-year Portland Teachers typically ran. Gary Lawrenze, vice president of lending for PTCU said the credit union's auto loan portfolio as of April 30 was $195 million and accounted for approximately 31% of the credit union's total loan portfolio. The problem, Lawrenze explained, was that whenever the credit union was closed, PTCU's auto financing was too. Now, using CUDL's fully automated loan approval system, members who are shopping for vehicles are no longer dependent on the credit union being open for business. They simply need to let the dealer know they're a member of Portland Teachers and CUDL technology does the rest. The member receives the same rates and terms offered by PTCU as if they were on-site at the credit unions. They can apply on-line through the dealership and receive instant approval. At press time, PTCU had aligned with a network of more than 50 auto dealerships in the Portland metropolitan area who have agreed to participate in the program. Credit Union Direct Lending provides the largest fully automated direct lending program for credit unions throughout California and the western U.S. They serve 900 credit unions and 550 dealerships in their network. At press time, Portland Teachers had only been on the CUDL system nine days. Judging from the auto loan activity that was generated during that period, Lawrenze said he was very encouraged by the volume and quality of the loans so var. Despite Portland Teachers' relationship with CUDL, Lawrenze said he knows he can't count on the salespeople at the car dealerships taking the initiative to ask customers shopping for a car whether they're members of the credit union. "The ultimate decision where the member gets their financing from rests with t hem," he remarked. "They have the ultimate say. It's up to them to tell the salesperson they're a member of Portland Teachers Credit Union and insist on getting their auto financing through the credit union via CUDL." -
ekingoff@cutimes.com
