Bankers View CU Loans as Tasty Chum
When it comes to auto loan portfolio acquisitions, some might see credit unions as the equivalent of little fish being circled in waters full of sharks–banks and other lenders.
Indeed, there’s plenty of flesh to devour. Auto loan and lease originations topped the $367 billion mark in 2011, a 12.5% jump from $326 billion in 2010, according to Auto Finance News.
Melinda Zabritski, director of automotive credit at Experian Automotive, said she can see why others outside the industry would be intrigued by what credit unions have to offer.
“I would expect credit union portfolio acquisitions would be healthy acquisitions because they have very low delinquencies,” Zabritski said. “Credit union portfolios would make a lot of sense for loans in the prime space.”