Credit Union Indirect Lending

If your credit union uses indirect lending, would you please take the time to let me know if you use a vendor or third party for indirect lending? For instance, we handle decisioning ourselves, but we use TCI to interface with RouteOne. I know of several third parties such as Groove Car, DILLS, and CUDLS, as well as various CUSO’s, but one of my objectives for starting this blog is to compile a list of all available options for credit unions. Any other information that you want to share would be appreciated as well. Feel free to forward this to your sales rep if you think that they would want to contact me or to post a brief synopsis of their company.

I haven’t had enough time to decide if I agree with everything, but this is a very thought provoking article from own your brand.

I was playing basketball with some friends from my church last night (an unusual occurrence since it was the 4th or 5th time in the last 3 years!), and I enjoyed being on a team with a 70 yr old gentleman that simply loves the game. He doesn’t move fast and he can’t jump.  He doesn’t play defense well…. but he can shoot, he can pass, and he loves the game. His enjoyment got me to thinking about my work and the people that I see at work who don’t smile, don’t enjoy challenges, and (frankly) don’t care about anything more than themselves. As managers, we need to find people who enjoy what they do and help them overcome their limitations. It is our job to position people who LOVE what they do (working at the credit union) to succeed.

P.S. The older gentleman that I mentioned scored 12 points in a game to 21 by 2’s and 3’s. Simply because the other team forgot about him. Don’t forget about people who love what they do! They will find a way to succeed!

Trey Reeme has a contest running to define what a Credit Union is in 15 words. Prize? $5 at STARBUCKS! I don’t know anyone that wouldn’t use that! Stop by and give it your best shot! http://www.opensourcecu.com/articles/2007/02/26/can-we-define-credit-union-in-15-words

This article addresses a need that we in the Credit Union “movement” are all concerned about. It extremely wordy and took my limited intellect re-reading it twice to understand what the author was saying. Take a look and see what you think!

http://hbswk.hbs.edu/item/5627.html

If you are looking for some free information, this webinar may be worth attending.

http://www.creditunions.com/events/webinars/webplate.asp?event=82

One of the great things about working at a Credit Union is the opportunity to help out in the community! If you (or your company) would be interested in helping some SOLDIERS attend a Springfield Cardinals game, please contact Tracy McCord at 573-329-3151 x251. Our Credit Union began this program last year and we were able to fill over 800 seats. Our goal for this year is 2,000 seats. We have worked a deal with the Springfield Cardinals to lower the price to $5.00 per ticket. Any funds donated will go directly to place SOLDIERS in the Seats. Here are some pictures from last years event.

Check out this post by Doug True. http://www.dougtrue.net/articles/2007/02/25/pain-triangle What is the center of your pain triangle? As I commented on his blog, mine is loan yield. Great stuff Doug! Keep it coming!

If you are like me and use outlook for your schedule this is a great FREE tool that placed your calendar (or inbox, tasks, contact, etc.) on your desktop. You can adjust the transparency and size of the item you are viewing. Good idea! via jkOnTheRun

http://jkontherun.blogs.com/jkontherun/freeware_of_the_moment/index.html

Who in charge of your indirect lending program? The dealers? The credit union staff? I HOPE IT IS NOT EITHER OF THOSE TWO! That’s right- neither of those two should be in charge. The best way that I can express who should be in charge is to tell a story that I have heard about Abraham Lincoln.

     In the middle of the Civil War, President Lincoln was asked if he still thought God was on the Union’s side. Lincoln responded with “I hope not!” The person asking the question looked at him in shock and was aghast at Lincoln’s statement. The President looked at the questioner very seriously and said “I do not believe God chooses sides. I hope not that He is on our side, but I sincerely hope and pray that we are on HIS side!”

    Not that I am comparing our members to God, but it is our job as Credit Union employees to do what is in the best interests of our members (whether it be the members who have deposited their money with us [the greater good]or the member asking for the loan [the betterment of the individual]). I agree with Rex Johnson’s statement that the only reason to turn down a loan is when you do not believe that the individual will not repay the credit union for one of two reasons 1) they have demonstrated that they will not (credit report) or 2) they do not have the ability (stable income) to repay.  Everything else is largely immaterial.

    So how do I reconcile an indirect program (more about relationships with the dealers) with the credit union’s and my goal (to take care of the member)? In a sense, the indirect program is an investment vehicle for a large portion of our deposits. It is also a way to connect with potential members (although follow-up is imperative if you want to have any growth besides the one loan). Finally, it is a way to invest in the community by keeping the financing process local and by demonstrate to the dealers that being fair and honest in business dealings is a viable growth strategy. (I don’t know about your dealers, but ours often forget this tidbit!) I would be greatly interested in your thoughts and why your credit union participates in (or does not participate in) indirect lending.