BREA, Calif. -
Goal In Conflict
That goal, however, has conflicted with regulatory limits on loan amounts, noted Tim Lewiston, VP-participations.
Nevertheless, with its mission to aid religious groups of all types in mind, not helping wasn't an option for Evangelical Christian Credit Union.
"So we began (loan) participations to help," explained Lewiston. "(Members) continue to add new facilities. On the loan side we grow 20-30% a year."
With all of that sustained growth, Evangelical Christian CU's core processor couldn't keep up. Before switching to The Complete Credit Union Solution from Glastonbury, Conn.-based Open Solutions Inc., Evangelical Christian Credit Union's computer system actually limited the number of digits the could be inputted, thereby capping the loan amounts.
Evangelical Christian Credit Union doesn't play with small amounts; when Wycliffe Bible Translators needed a new aircraft for its missionary work overseas, for example, the credit union offered a $500,000 loan to buy a Beechcraft twin-engine plane that was quickly used in New Guinea to help save a sick teenager.
Another unique loan that required participation from other credit unions was made to Heartland Community Church in Rockford, Ill. Heartland Community was growing fast enough that it made plans to purchase a local mall, gut the old J.C. Penney's and build a new church while keeping the remaining tenants. Church officials created a coffee shop, a religious bookstore and a need for a big loan amount-$25 million to be exact.
While Evangelical Christian Credit Union has an existing network of credit unions that have participated in its loans, Lewiston said the ability to participate out a loan the size of that made to Heartland Community was only possible because of the expanded processing capabilities of its Open Solutions' system, which cannot just crunch the numbers but also ensure payments are promptly made.
"Without the participation network we couldn't have done that loan. We also have to have the best technology to handle the huge volume," he said.
Significant Growth Recorded
In 2005, ECCU had $585 million in participation loans; by this year that amount has grown to $700 million.
Evangelical Christian Credit Union Director of Loan Servicing Lisa Tindal said its software now keeps tabs on payments from the borrower, immediately sends it to the loan participants and issues a report for record keeping.
With some of the credit unions buying loan participations for as much as $8 million, timely reporting is critical.
"It's faster. It's in real time. It's more accurate. Accuracy is key," Tindal said.
FOR MORE INFORMATION
www.eccu.org
www.opensoluions.com
