SANTA CLARA, Calif. — Noting that it did not have the manpower to immediately handle all of the CUDL applications that were coming through, National 1st Credit Union has turned to Lending Solutions Inc., to provide 24/7 review of its indirect lending applications.
While approximately 30% of the CU's applications come in after hours, Lending Solutions reviews nearly 70% of its total CUDL applications, according to Sandy Scutchall, vice president of lending at National 1st. The CU saw 208 applications come through CUDL in February. Out of those it funded 73, but out of the total about 90% went through Lending Solutions, Scutchall added.
"We have $29 million in CUDL loans at this point," Scutchall said. "When the program first started we used LSI from four o'clock in the evening when we closed to nine in the morning when my staff came in and 24 hours a day on the weekends. Then I lost a loan officer, who was strictly a CUDL loan officer, so we put staffing on hold and I wanted to see if my other officers could handle it with LSI. It's worked so well that I'm not even planning on hiring another loan officer."
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When it comes to CUDL loans, credit union size doesn't matter, said David Brooke, vice president of Lending Solutions.
"More importantly, how active they are in CUDL? How many dealers are they trying to get to participate in their network in their area? Credit unions need to make sure that they're priced right, that their relationship with dealers isn't exorbitant in relationship to what they're getting back from the dealer and that the entire value of the loan is of benefit to them," Brooke explained.
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