WASHINGTON — Although auto lending continues to be a strong area of credit unions' loan portfolio, making up the second largest lending category, and 85% of all credit union auto loan growth came through indirect lending, many CUs still question whether indirect lending is a viable option for them.
In fact, according to data from Callahan & Associates, only 20% of CUs include the service as part of their loan program.
One of the challenges CUs have to deal with before implementing an indirect lending program is deciding what type of program to offer and how to introduce it. Credit unions also want to know if the subprime market is an area they should include in their indirect lending program, and if so, how they should manage the risks.
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Callahan & Associates will address the topic in a Webinar on Sept. 26 on "Best Practices in Subprime Indirect Auto Lending."
Some of the topics that will be discussed in the Webinar are: best practices in indirect subprime lending, mitigating the risks associated with subprime indirect lending, how credit union staff can manage indirect loans, and credit union success stories.
Among the credit union representatives who are expected to present are Steve Sureda, manager, forecasting and analysis, Coastal Credit Union; and Peg Lamb, CFO, Non-Prime Indirect Lending Program for Community Capital Credit Union.
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