March 2, 2017


Comments

 
 
 
  • It could be regulation for the mortgage, but I have to say I am left scratching my head over the auto policy. To me this appears to be loan policy built on a scarcity mindset, that the credit union must protect its revenue sources by restricting it's member owners options. This is along the same vein of thinking that has lead many credit unions to shut down things like giving a member a payoff quote without a lengthy identity check and an interrogation as to why they are requesting it.
    Anonymous
     
     
     
  • Mr. Jeffreys, Perhaps it would be good to explain how the mortgage process works for a CU's that are larger. With the higher volume of business that occurs as an organization becomes larger, there is a greater need to transfer credit risk, balance liquidity and concentrations risk to the secondary market. Once a loan is sold to the secondary market, it becomes part of a mortgage back security (MSB) or subject to the secondary investor requirements. Most often these loans can not be modified due to investor limitations on modifications to their investment. Perhaps less condemnation of your experience being a lack of focus on member service and more of an insight on regulatory restriction that keep CU's from being able to stick to their core member service values.
    Anonymous
     
     
     
  • I'm pretty sure this isn't a secondary market issue in the case Jon outlines. He references this was an ARM. Most likely held and serviced by the credit union.
    Scott
  • Of course you're right, but how many industries are being disrupted today because their leadership repeatedly says, "That's just the way things are and we can't help it"? We can help it. Change isn't easy, isn't cheap, and isn't instantly validated by a boost to the bottom line but the danger of accepting the world as it looked yesterday while upstart companies dream up a new tomorrow, is that it leaves us looking like we don't care about serving our members. We built the CU movement by taking care of people, let's not lose it to the new generation of companies that find ways to do what we keep saying we can't.
    Victoria
  • I understand my loan may have been sold. There are dozens of member friendly reasons credit unions sell loans- one of which may be so that the credit union could make more loans to other members. This a good thing. If this was the case and my loan was sold- all the credit union would have needed to do was explain that and provide me a set viable alternatives. In my eyes, the full refinance process is not a viable alternative. Taking the time to communicate with members especially something as complex as mortgages is tough in the age of automation and digital channels- but it can be a competitive differentiator.
    Jon Jeffreys
  • Jon, I think in your response the underlying issue is addressed... communication. It is not about the rules and regulations for members, it is about the understanding, the knowledge to improve their financial well being. Perhaps the answer is "no," but what are the options? What can we do? How do we get to yes? I see this not as a big vs. small, but an industry issue faced by many CU's. Consumers demand automation and digital solutions, until they don't. How do you wisely provide both?
    Anonymous