Lending

The bread and butter of the CU auto loan portfolio is coming under greater pressure, say several analysts who see banks zeroing in on former franchisees of General Motors and Chrysler who are hanging out a new shingle.

If rates tick up, terms of loans will lengthen to keep borrowers in an affordable payment, predict analysts — some of whom have spotted auto loan terms of more than 100 months.

Credit Union Journal asked auto lending execs and analysts for their advice on managing the auto loan portfolio in a rising rate environment. Here's what they had to say.

Educational Employees CU said it has seen significant lift in its auto sales and a boost in new membership after launching an auto loan promotion that doubled as a benefit for World War II veterans.

CPCU Credit Union is starting the new academic year with a "Back to School Loan" it describes as designed to assist parents, young adults and educators with the growing number of costs associated with starting a new academic year.

Freedom First FCU has won the $100,000 Wells Fargo NEXT Seed Capital Award from Opportunity Finance Network and plans to use the grant to assist the many immigrants in its area get the financing needed to apply for U.S. citizenship.

Cornerstone Federal Credit Union's "Win the Race to Become Mortgage Free" promotion was so successful, the $96-million CU was forced to suspend it on the fourth day.

ALBANY, N.Y. – After years of futile attempts to drive high-cost online lenders out of business, at least one state's regulators appear to have hit on a successful strategy: cutting off their access to the payments system.

COLORADO SPRINGS, Colo. – As more consumers buy cars from private individuals instead of dealerships, Ent FCU is looking at ways to appeal to this expanding market segment.

WASHINGTON – One day after six federal agencies issued a notice revising a proposed rule requiring sponsors of securitization transactions to retain risk in those transactions, insiders questioned if the changes do much to help credit unions.

ALEXANDRIA, Va. – Mid-year data for credit unions released by NCUA show strong loan growth and net worth that is at the highest point since 2008.

MADISON, Wis. – Entries are being accepted through Sept. 13 for the 14th annual Excellence in Lending Awards, which recognize outstanding lending results and practices by credit unions.

WASHINGTON – CUNA and NAFCU have joined with other trade associations and financial institutions in requesting additional modifications be made to the definition of “qualified residential mortgage” (QRM), along with other changes to a 505-page proposal currently out for comment.

CHARLOTTESVILLE, Va. – As mortgage rates continue a steady climb, U.S. financial institutions could be facing a significant decline in mortgage volumes during the second half of 2013, according to projections being made by SNL.

CHARLOTTE, N.C. – A judge has ruled that Bank of America Corp. must face a trial next month in a lawsuit alleging the bank's Countrywide unit defrauded Fannie Mae and Freddie Mac by selling them billions of dollars in bad mortgages.

WASHINGTON – Bankers and other lenders are strongly urging the Consumer Financial Protection Bureau to delay implementation of its "qualified mortgage" and other pending rules, warning that they will not be ready by the Jan. 10, 2014 deadline.

ONTARIO, Calif. – Lending in one of the states hit hardest by the recession is on the rebound.

WASHINGTON – For the first time since 2008, loan growth at credit unions has exceeded deposit growth.

SOMERVILLE, Mass. – CPCU Credit Union is offering a Back to School Loan aimed at assisting parents, young adults and educators with costs associated with a new school year.

ALEXANDRIA, Va. – NCUA said it will host two free webinars on member business lending for small credit unions during September.