March 28, 2011


  • Wayne is right on the money. Determine what processes and systems work best for your credit union. In the end, it has to be convenient for your member. Autonomous loan officers are fine if it improves member service and controls risk. Determining your risk tolerance should start with your Board of Directors. All credit unions should have a Portfolio Risk Management Policy approved by the board that reflects the Board of Directors' appetite for risk. Where most credit unions are challenged is in their collections strategies. Love the quote "Anybody can make A paper loans. When you get down to C and D, you're going to have to go to work."
    Anna Mendez
  • Wayne pretty much nails it. I would offer Tip #7: Identify those members who are not only in-the-market for auto loans, which will improve campaign performance, but also those members that pass your specific credit union’s underwriting guidelines. That’ll help eliminate those loans that will end up with your collection group. I couldn’t agree more that anybody can make A paper loans. But being able to originate and service C and D paper, in a profitable manner, takes a deliberate marketing strategy on the front end.
    Bob McCarron