ORLANDO, Fla.–One of the panels that brought the most questions from Credit Union Times' conference attendees was CUNA Mutual's on non-interest income strategies and success stories.

Credit unions looking for a "truly a fee-based solution" might want to check out debt cancellation, an evolved version of credit insurance outlined by CUNA Mutual Lending Sales Specialist for National Accounts Terry Davis. "Debt cancellation offers great branding opportunities for your credit union," he said. "And because it's not regulated by the insurance commission, your employees don't have to be licensed to sell it." Ironically, he noted, the only state not permitting the product is Florida.

Davis said debt cancellation is a two-party loan protection contract between the lender and borrower in which the lender agrees to cancel or defer some or all of the debt if a specific life event occurs, such as disability or job loss. The credit union earns non-interest fee income from marking up the wholesale cost and charging the borrower a retail fee.