JEFFERSON CITY, Mo. — As Credit Union Journal examined why certain CUs remain robust lenders, one theme was cited repeatedly: solid and experienced staff.
Case in point is Conservation Employees Credit Union, which has placed an emphasis on service, along with attractive pricing options whenever it can.
The $67-million CU was recently listed as one of the top two credit unions in the Return to Borrower category at Callahan and Associates for CUs with assets between $50 million and $100 million.
"If we stay on track in each of those areas, it keeps our program relevant," said Louie R. Delk, president of the 6,500-member credit union. "On this point, I really need to emphasize what a great staff we have here at CECU. Not just our lenders, everyone. I can't place enough value on a group of employees that is great at being nice to your membership."
Despite the current economic challenges, Delk said CECU is seeing an increase in its percentage of mortgage loans, as compared to total loans. "Two years ago, that ratio was around 31%," he said. "Now we are at 43%."
What's helped the CU succeed is its in-house mortgage program, which Delk said "is a little bit different and continues to be popular with our membership." "On both first mortgages-residential and land-and equities-residential and land, we offer a five and five term," he said. "We still get the protection of an adjustable rate, while our members enjoy the benefit of knowing that their payment will only change every five years."
What hasn't worked over the past several months for CECU, is "we have not had a lot of success chasing the best available rates," Delk said. "At some point, as a lender, I think you just have to recognize that there may not be a strong inclination for your membership to borrow."
"We are a single SEG credit union with a pretty strong relationship with our sponsor group," Delk continued. "Our members generally consider us their lender of choice. We might have picked up a few loans as a result of the perceived illiquid market, but it has not been a dramatic opportunity for us."
