July 23, 2012


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  • GREAT ARTICLE - RE-AFFIRMING MY BELIEFS. THANK YOU FOR THIS ARTICLE.

    DEBBY
    DEBBY BOHMAN
     
     
     
  • Good story, good plan by this credit union. It's easier said than done though. A good "story" loan requires the credit union to:

    1. Get the detailed story.

    2. Stay out of the loan, emotionally, hard for some loan people to do.

    3. See if the story matches the credit problems. If the member says they lost their job in 2009 and that caused all of their problems, but their bureau shows problems back to 2003 and ever since, they're just a career delinquent.

    4. Make some sort of value judgment on their story and attitude. Occasionally you'll get someone who has a real attitude about their credit, and demand you make them a loan. That really turns me off. A good attitude doesn't guarantee repayment, but a really bad attitude to me tells me we'll probably have more problems with this member.

    5. Make sure the borrower clearly has the ability to repay the new debt

    6. Do a "strong close" so that the member understands how important it is that their credit union gave them a second chance, when their due date is, and that they need to call and explain if their payment is late. As I like to say, we're in the business of giving second chances. Not third chances.
    Bill Vogeney
     
     
     
  • There was a time when we only listened to members because we didn't have a FICO score to grab on to as a reason to "deny" a member's loan request.

    We listened because we truly wanted to help our member if we could. It was called "Building a relationship" and it turned out to be the foundation of the credit union industry. How many of you in credit union land don't have fourth or fifth generations of members who joined at the urging of relatives because of what the credit union did for them when they needed help. Less focus on reasons to turn requests down and more focus on ways to help a member is a common sense edict for every credit union.

    For the FICO score addicted out there, delinquency loan rates do not increase using this program. I know this from experience.
    Mark Wilbur
     
     
     
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  • Great article!
    Kathi Quinn
     
     
     
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  • We are a 4.4 million credit union with just me and one other full time staff person and have made $1,335,432 in new loans through June 30,2012. We do something that most credit unions do not do we cold call on the business in the community on Thursday mornings. Our delinquency is 1.14%. Our peers have had a negative loan growth of about 1% ours is a positive 30% plus growth rate. Credit unions and take includes CEOs need to get out of the office and get in contact and remain in contact with their members or potential members. The cost is your time a a pair of shoes or so but the person touch by the CEO with members or potential members is invaluable. My other secret will be in my for coming article/book Rise Again and Rise Again.

    Dennis A. Fisher

    First Security Credit Union
    Dennis A. Fisher
     
     
     
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  • Great news! Nicely written article.
    Julie
     
     
     
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