Now that the NCUA board has approved a proposal that would require all CUSOs to file financial reports directly with the regulator and the appropriate state supervisory authority, some CEOs of member business lending CUSOs have weighed on what the the changes may mean for their operations.
Revised NCUA rule discussed at the Regional CUSO Alliance meeting last week in Cincinnati.
Coming from the banking industry with nearly 30 years of experience, Terry McHugh said it never ceases to amaze him on just how different credit unions are.
The Regional CUSO Alliance said it came together May 1-2 in Ann Arbor, Mich., to promote a business lending model that emphasizes local loan originations.
Since at least 2010, Telesis Community Credit Union’s member business loan program has been in a downward spiral.
The 500-member Regional CUSO Alliance will meet in May to exchange best practices and address industry challenges and opportunities.
At a time when credit unions were treading lightly, Telesis Community Credit Union was considered by some to be an early leader in the commercial lending space.
While the degree of optimism varies, a sampling of perspectives from business lending CUSOs suggests an economic upturn may be underway.
In the economy's heyday, when the flow of credit gushed abundantly to small businesses and lines of credit and leased new equipment were granted freely, some lenders seldom, if ever, asked for a personal guarantee. Then the recession hit.
The proposed elimination of personal guarantees could potentially cripple underwriting and punish those credit unions that have not "excessively abused their privileges," a group of 15 member business lending CUSOs recently wrote.