NEW ORLEANS-Luis Pastor believes the size of someone's paycheck is no indicator of their commitment to repay a loan.
"You don't measure character based on income, you measure character based on knowing the people you serve," said the CEO of the $120-million Latino Community CU in Durham, N.C.
The philosophy, which Pastor and the rest of his team follow to serve the underserved, has helped Latino Community CU grow loans while keeping charge-offs at .23%. It also led to LCCU winning two CUNA Mutual Group Excellence in Lending Awards during the CUNA Lending Council's 2011 Annual Conference.
"Don't be afraid of loaning to someone because they don't have enough income," Pastor told Credit Union Journal. "Take the time to talk to them and know them, learn their story, and once you understand their needs give them the product they need. Don't give them too much or too little, just give them what they need."
Latino Community won in the categories of Mortgage Lending, Assets Less Than $250 million; and Low to Modest Means. CUNA Mutual Group pointed out that it is rare that a credit union wins two Excellence in Lending Awards in one year.
Other Excellence in Lending winners announced at the meeting:
• University of Kentucky FCU, Lexington, Ky.; Consumer Lending, Assets More Than $250 million
• Texell CU, Temple, Texas; Consumer Lending, Assets Less Than $250 million;
• Charter Oak FCU, Groton, Conn.; Mortgage Lending, Assets More Than $250 million;
• Black Hills FCU, Rapid City, S.D.; Business Lending.
