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2006 Excellence in Lending Winners

In 2000, the Excellence in Lending Award was created through a joint effort between CUNA Mutual Group and the CUNA Lending Council to recognize credit unions that create exceptional lending results through stable, sustainable operations.  The Credit Union Excellence in Lending Award provides an opportunity for credit unions to share best practices and ideas, build networks, and recognize and celebrate lending excellence.

2006 Credit Union Excellence in Lending

Consumer Lending Winner

Less than $250 million in assets

 

Latino Community CU ($42 million in assets; nearly 50,000 members)

  • Developed the CreditBuilder loan program for first-time borrowers
  • Car loans up to $10,000 with no credit history
  • Signature loans for borrowers with no credit history
  • AutoPlus loan program to reward borrowers with good payment history
  • No annual fee credit card program
  • Offers financial literacy workshops in Spanish every two weeks; over 7,000 participants
  • 95% of members are low income and 75% are first-time account holders

Latino Community CU was one of the first regulated lenders to aggressively serve low income, new immigrants. More than 75 percent of loan borrowers have no credit history. LCCU developed the CreditBuilder loan program for borrowers. Members were able to establish a credit history and move on to other loan products. To date, 2,502 members have received CreditBuilder loans with the average loan of $800. LCCU is aware that in North Carolina it is essential to have a vehicle to go to work, shop and worship. For this reason, LCCU provides car loans up to $10,000 with no credit history. To reach out to its non-English speaking members, LCCU offers financial literacy workshops in Spanish every two weeks.

2006 Credit Union Excellence in Lending

Consumer Lending Winner

More than $250 million in assets

San Antonio FCU ($2 billion in assets, 243,000 members)

  • Developed Manufactured Home Loan program (CUFBL) following member requests.
  • Pioneered and designed an indirect vehicle lending program (C.A.R.S.) for SACU and other credit unions, thus increasing profits for all partners.
  • Pioneered as the first credit union to offer APPRO and DealerTrack® for indirect vehicle lending
  • Pioneered as the first credit union to offer e-Contracting, a paperless application-to-delivery vehicle loan system
  • Developed Small Ticket Sales Finance program that allows members to sign loan docs and make point-of-purchase sales on the spot
  • Offers members a Web-based loan calculator providing different borrowing scenarios and online application.

San Antonio FCU continues to develop innovative lending programs to meet members’ needs. Its manufactured home loan program grew out of an increasing number of members’ requesting manufactured home financing. SACU pioneered with its design for an indirect vehicle lending program for SACU and other credit unions to help spread the cost of acquisition over a greater number of loans, thus increasing profits for all partners. SACU was the country’s first credit union to offer e-Contracting, a paperless application-to-delivery vehicle loan system. Members have the ability to use a Web-based loan calculator, offering different borrowing scenarios and online application. The Web site averages 2,100 visits per month.

2006 Credit Union Excellence in Lending

Mortgage Lending Winner

Less than $250 million in assets

Ohio University CU ($179 million in assets; 22,000 members)

  • Added mortgage programs to help members with modest means
  • Began offering Ohio Housing Finance Agency programs and CUNA’s HLPR loan
  • Lowered mortgage rates
  • Hosted home-buying seminars
  • Brought mortgage servicing in-house
  • 7.3 percent increase in new loan volume in one year

Ohio University CU added new mortgage programs to help its general membership and members with modest means. OUCU began offering Ohio Housing Finance Agency (OHFA) programs, grants and loans, and CUNA’s HLPR loan. OUCU lowered rates, added mortgage content to its Web site, hosted home-buying seminars, deepened Realtor relationships and brought mortgage servicing in-house. Since the changes, OUCU doubled its OHFA loan volume in less than one year, provided grants and HLPR loans, and had a 7.3 percent increase in new loan volume from 2004 to 2005.

2006 Credit Union Excellence in Lending

Mortgage Lending Winner

More than $250 million in assets

Ent FCU ($1.9 billion assets; 159,000 members)

  • Leveraged market presence to increase mortgage market share
  • Commitment to serving low to moderate income borrowers
  • Promoted first time home buyer program
  • Partnered with CUNA’s HLPR program and the Colorado Housing and Finance Authority
  • Became #1 credit union mortgage lender in Colorado within one year
  • Purchase money volume increased 218 percent, mortgage volume 81 percent, and construction loan funding more than doubled

Ent FCU noted its mortgage products and services were competitive in the market, but most members did not know Ent offered mortgages. Ent identified a (Big Hairy Audacious Goal – BHAG) to become the market’s #1 mortgage provider by increasing community awareness, serve low to moderate income borrowers, and better relationships with Realtors and builders. Ent added products such as a first time home buyer program, and partnered with CUNA’s HLPR program and the Colorado Housing and Finance Authority. Service and call center staff were educated; a mortgage sales office was opened; and radio sponsorships were purchased. In one year Ent FCU became the #1 credit union mortgage lender in Colorado. Purchase money volume increased 218 percent, overall mortgage volume climbed 81 percent, and construction loan funding more than doubled.

2006 Credit Union Excellence in Lending

Low to Modest Means Lending Winner

Bethex FCU ($11 million assets; 10,000 members)

  • Formed in 1970 to help “welfare mothers” avoid using pawnshops and loan sharks for cash emergencies
  • Main goal is to serve low/moderate income families whose income frequently comes from public assistance
  • Made almost 800 loans last year amounting to more than $2.4 million
  • Partners with NYC check cashing outlets to offer financial services to customers, creating 130 virtual branches
  • Partners with a community organization to establish an emergency loan program to pay the rent of members facing eviction
  • Provides low-cost loans to Gypsy cab drivers, freelance drivers who go where medallion cabbies will not
  • Offers an emergency loan known as “Cash in a Flash” to combat predatory lenders
  • Offers a low interest “Goal Saver Loan” to help members build assets and credit history

Bethex FCU formed in 1970 to help “welfare mothers” avoid using pawnshops and loan sharks for cash emergencies. The small credit union continues to primarily serve people of low/moderate income. With just $11 million in assets, the credit union made almost 800 loans last year for more than $2.4 million .