Lending Insights Articles
How To Optimize Loan Performance
Rapid growth in credit union indirect lending programs has triggered more examiner scrutiny and additional emphasis on the performance of these programs. Credit unions can be more effective in mitigating risk and optimizing performance within their indirect portfolios by taking a number of steps, including implementing a series of key metrics: dealer performance scorecards, multi-dimensional…
Lending Data & the Credit Union Mandate
The very first provision of the Federal Credit Union Act declares that, in addition to promoting thrift, credit unions exist to create a source of credit for members to be used for provident or productive purposes. The lending department is key to credit unions fulfilling this mandate. Your credit union’s loan products help members build…
The Prospects of Change
This is graduation season. Over the past two weekends, I’m proud to have had the opportunity to celebrate college graduations for my youngest two daughters. It has certainly been hectic, as these graduations were at two different schools — in two different states, but it is truly a blessing to know that I have completed…
The Time Is Now to Prioritize Technology for the Future
With the economy improving, the unemployment rate being the lowest it has been in nine years, and consumer confidence building momentum, credit unions continue to experience steady member and loan growth, low delinquencies and charge offs. These are all very positive signs, but can foster a false sense of security if not careful. History has…
Drive ’17 Conference Delivers the Speakers and Strategies to Help CUs Win
The lending marketplace continues to see competition ramp up. And now, more than ever, to remain not only competitive, but to gain market share, credit unions that embrace cutting-edge technology and strategies to capture more loans, improve loan portfolio performance, better engage members, and improve member loyalty, have a distinct advantage. Leading experts and innovators…
Fifty First Loans
Well, February is considered the month of love, and on February 14th you most likely took the opportunity to tell that someone special in your life what you should have told them, repeatedly, over the last 365 days. There used to be an old marriage joke that maybe worked in the mid-twentieth century, but probably doesn’t…
Strengthening Portfolio Performance is Critical in Today’s Auto Lending Marketplace
Since the beginning of time, lenders have sought a way to accurately measure and predict risk in their loan portfolios. Understanding risk allows lenders to make sound credit decisions and properly price loans. Ideally, lenders need to make, at the very least, a high enough return on loans to cover the principle and any costs,…
Predictive Modeling – Important Questions that CUs Need to Ask
As you know, the new CECL guidance calls for estimating life of loan losses for the ALLL reserve. “Life of Loan” — just three simple words — but its implementation is anything but simple. Many factors within your portfolio can, and often do, affect loss estimates. For example, the age of the loan, borrower’s credit…
Using Technology to Improve the UX
Recently, our product team was involved in a discussion about “user experience.” This topic has become very important in the world of technology, as we continue to create very sophisticated tools to advance how companies, including financial institutions, do business. However, if the user can’t figure out how to use the technology they have, it…
CECL Compliance – Success is a Process, Not a Destination
According to the American Bankers Association, CECL (Current Expected Credit Loss) represents “the biggest change to bank accounting, ever.” The reality of these sweeping changes in the way we have done business for the last three to four decades, for some, is daunting. Don’t make the mistake of believing that the five years given before implementation…