This week, CreditUnions.com looks at the six ways to get to "yes," home owner trends in the U.S., reorganizing a loan department, and borrowing and saving responsibly.
Here are four data points you can't miss:
Many credit unions today use automated decision technology to provide qualified members with instant approval of their loan requests. Key criteria such as credit score, loan-to-value, and debt-to-income ratios are built into the decision engine, freeing up underwriting staff to focus their efforts on more challenging credit decisions.
At Desert Schools Federal Credit Union, a combination of auto decisioning on 20 to 30% of loan requests and rapid response from its central underwriting team of eight employees has made a tangible impact. Today, the credit union decisions nearly 85% of loan requests within 30 minutes.
Learn more about six best practices designed to serve credit union members better, get to decisions more quickly, and more, in "6 Ways To Say Yes To The Request."
71.5% and 28.5%
Credit unions made $51.4 million in mortgage loans in 2015. This was 5.4% of total reported mortgages throughout the United States.
Males accounted for 71.5% of mortgage dollars originated at credit unions, where as female members accounted for 28.5%.
To see what else HMDA data reveals, including facts about refinance, home improvement, income, loan size, and millennials, check out "Home Owner Trends In The United States."
Although by yearend 2014, the Indiana-based Interra Credit Union had a strong loan portfolio it was struggling to keep pace with deposit growth. What’s more, its loan income was dependent on agriculture real estate and consumer direct auto.
So the credit union reimagined its lending strategy. On Jan. 1, 2015, Interra began restructuring its lending department and separated what was once a single, concentrated department into five divisions: agribusiness, business services, indirect services, residential mortgage, and direct retail lending.
Learn how this new organizational structure works, as well as some of the new challenges Interra had to confront in "How A Department Re-Org Supports Proficiency Across 5 Business Lines."
When a member needs cash now, Freedom First Credit Union offers a way for its members to quickly and conveniently borrow money. The credit union debuted Borrow and Save in the second quarter of 2012 as a way to meet the financial needs of its membership, provide fast cash with affordable interest payments, and contribute to borrowers’ future financial wellness.
As part of the Borrow and Save program, Freedom First offers loans of up to $5,000. It holds half of the loan balance in a savings account until the borrower pays down the other half. During this time, the CDFI-certified credit union pays interest of less than 1% on the savings. It might be small, but it's a start.
Learn more about this product and how prevents payday loan churn in "A Strategy To Borrow Responsibly And Save Sensibly."