CUNA Mutual has added a home equity debt cancellation product to its menu. Called "CU CHOICE Lending Protection Home Equity," the solution allows credit unions to choose from a variety of life events and time duration covering transient events, then set their price accordingly to create the best member match. Members, in turn, are able to select from a menu of options, depending on how the CU sets up the program for its members.
"Due to the larger loan balances, protection products applied to home equity loans tended to be expensive, if they're even offered, making cost one of the reasons lenders have hesitated to look at offerings in this loan category," said Tom Keepers, CUNA Mutual's AVP-Debt Cancellation Products.
CUNA Mutual noted that CUs currently have booked approximately $24 billion in home equity loans and they've grown to become an average of nearly 7% of a total loan portfolio.
"This largely unprotected loan category is steadily growing and presents opportunities for credit unions to grow shrinking margins and mitigate loan risk," said Rich Fischer, vice president, Credit Insurance Products, CUNA Mutual. "And, as members take on more debt, they need protection options, too."
The CU CHOICE Lending Protection program offers six prepackaged versions of lending protection, the related forms, and staff training materials.
For info: www.cunamutual.com.