Riding Wave of Record Loan Growth, Credit Unions Prep for 2013
- Since 2007, credit unions have originated $1.5 trillion in loans to consumers and small businesses.
- Experts suggest expanding risk, mimicking successful programs to grow loan portfolios.
- Offer a myriad of options to low income members as alternatives to high interest rate loans.
Amuch anticipated gift arrived during the holidays when third quarter data showed credit unions posted their strongest loan performance in history.
Autoland Inc., an auto buying CUSO
Credit unions are in an interesting position on growing their auto loan portfolio. Most have a challenging time building portfolio, especially on loans secured by new vehicles due to competitive pressure from the manufacturers’ captive finance arms. As such, many find their auto lending serving the used car niche. Delinquency challenges during the recession swung the pendulum towards a focus on well-qualified borrowers, or prime A and some high B paper.
American Credit Union Mortgage Association
Have a Positive Reply. One of the many results of the housing bubble has been more focus on the home finance and payments required to purchase or sustain a home. During that discussion, borrowers have become much more familiar with the process and details that ever before.
Cooperative Center Federal Credit Union
The credit union is the 2012 recipient of the Excellence in Lending award in the consumer lending – assets less than $250 million category from the CUNA Lending Council and CUNA Mutual Group.
CU Business Group, a business lending and services CUSO
Going into 2013, it is critical to build loans but at the same time not get too desperate and put loans on the books just for yield. Credit quality is the no. 1 long term success factor in business lending Given that, I believe credit unions can grow their loan portfolios through either or both of the following ways.