'Changes In Market Have Led To Increased Risk Exposures'
Risk exposures for credit union collateralized loan portfolios have increased significantly,
"Risk exposures on collateralized loans have traditionally been well understood and anticipated by collateral
Rising numbers of bankruptcies, riskier lending practices and the failure of borrowers to secure insurance coverage
Since 1996, Chapter 7 and Chapter 13 bankruptcies increased 45% and 7%, respectively. Concurrently, loans subject
"We've all seen ads attempting to attract borrowers by guaranteeing a loan 'If you have a job and $90 in your
The number of uninsured and underinsured borrowers, particularly for automobiles is skyrocketing to alarming and
He recommended credit unions and their collateral protection provider analyze eight key indicators to assess the
* Management philosophy. Is the credit union reluctant or willing to force-place coverage on members, and to what
* Lending style-conservative or aggressive?
* Location-urban or rural?
* Field of membership-Single segment or open charter?
* Expense management. Is the credit union willing to fund a CPI program or pass those costs on to members?
* Size of credit union.
* Use of technology-Automated or manual?
Boswell led small groups through six risk assessment exercises requiring score assignments for each risk factor.