Credit Union Indirect Lending

Thanks to CU Communicator for pointing this out!

Take a look at this post from Robbie Wright! What a great tool! Be sure to let your front line staff use this!

If you work for a credit union and need a blog, take a look at Robbie Wright’s post. Great idea! I hope it catches on. One of the reasons that I started this blog was because of the lack of information on indirect lending for credit unions (especially POSITIVE information . I haven’t had time to go through the set up process yet, but from the comments things seem to be going well. If you’ve thought about something like this… carpe diem! (or as Sonic would say carpe bloge!)

If your Credit Union uses Symitar (or is considering doing so), please take a moment to look at this flyer.

2008 Best Practices of Lending for Symitar Credit Unions.pdf2008symitarinitialflyer.pdf

First a BIG “Thank YOU!” to everyone that took the time to complete the indirect lending survey that I had up for a few months! Now to share the results of the survey. Any comments that I added are in parentheses and purely for your reading enjoyment!

Question 1: How does your Credit Union participate in Indirect Lending? 89%- In House/ 6%- CUSO/ 6%- Third Party

Question 2: How large is your Credit Union? 17%- Less than $100 million/ 28%- $100 to $249 million/ 11%- $250 to $499 million/ 33%- $500 million to $1 billion/ 11%- Great than 1 billion.

Question 3: How do you process applications? 6%- ALL PAPER (you have my sympathy been there done that!)/ 12%- Faxed application and manual input for automated processing and/or decisioning/ 82%- Automated with DealerTrack and/or RouteOne

Question 4: If you credit union uses a system to connect with your dealerships, please select the appropriate one from the list or specify “other.” 47%- Only DealerTrack/ 18%- Only RouteOne/ 25%- Both DealerTrack and RouteOne/ 6%- Symitar

Question 5: How old is you indirect lending program? 21%- Less than 1 year/ 32%- One to three years/ 5%- Four to seven years/ 15%- Seven to ten years/ 26%- More than ten years

Question 6: If you could change one thing about your indirect program what would it be?

1. Make dealers more honest (I agree but good luck with that one!)
2. None (WOW!)
3. Pay the F&I person directly
4. That I controlled enough of the market to sell more loans and manage my liquidity better
5. Link origination system to core system (I feel your pain!)
6. Less paperwork!
7. (And shame on the 68% of you who didn’t respond!! ,

Question 7: Does your credit union close more new or used car loans? 17%- New/ 83%- Used

Question 8: Do you allow dealers to mark up your rate? 26%- Yes/ 74%- No

Question 9: Does your credit union purchase default insurance for your indirect loans? 21%- Yes/ 79%- No

Question 10: Would you be interested in completing a more detailed survey? 42%- Yes (Thanks!) 58%- No (Gee..thanks! [j/k])

If you have not purchased Forum Solutions sub-prime lending blueprint… you should! I got mine yesterday and I can positively say that it is well worth the investment. It covers everything from ”why should we do it” to ”how should we do it.” Sub prime lending has been the problem I have been trying to solve for the last 18 months so this has been a huge help to me. Kudos to Doug True and his staff for putting this together!

 PS. No my credit union does not use TAPS and there is no affiliation between my credit union and Forum so this is not a sales attempt. It is an effort to point out good and helpful information.

Take a moment to click this link and verify your credit unions information with CUES. They will give you a free webinar for your trouble. Thanks CUES!