CHICAGO – North Side Community FCU was awarded a $35,000 Innovation Grant from the National CU Foundation to help the community development credit union refinance subprime auto loans for its members.
The CDCU will target "upside down" loans, where members’ outstanding balance exceeds their car’s value.
The funds will be used to purchase quarterly reports from credit bureau Trans Union to identify members who have auto loans with other lenders; work with impaired credit bureau Payment Reporting Builds Credit to acquire a list of all "thin-file" credit reports that show a recent credit inquiry from auto dealerships on Chicago’s North Side; and consider offering credit enhancements that would protect each borrower and the credit union: guaranteed asset protection insurance, mechanical breakdown insurance, disability and job loss insurance.
