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• I read this prticle and was curious to see if the increased auto lending was doing much for their bottom line; only two credit unions had healthy ROAs and they (Benchmark and Kunia) were very small and NOT using indirect loan programs. the other credit union not using indirect appears to be buring through its capital rapidly and for other reason I suspect (look at their expense per employee).

  rmb

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• While we have held our loan growth (65% autos) to only 40%, we have not used indirect, as our business model calls for a personal close, and agressive collections. Our target market is mid to low credit score members (our median score in the area is 566) and we have a weighted average loan rate of 10.7%. Our model works great, as we have a ROAA of 2.4% or so and rising. (Net worth also grew 25% annualized as of June.) Unless NCUA suceeds in forcing us to change our business model and only make loans to A and B tier borrowers (and be in competition with all the indirect lenders and banks, we will continue to exceed our goals and serve our members. (We ARE a low income cu and a CDCU.) I hope there IS room for more than one business model in credit unin land, as we won't survive otherwise.

  Bill Wade

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