Lending

MADISON, Wis. – In the latest punch-up over the crash in the mortgage market, CUNA Mutual Group has filed suit against RBS Securities and asked a federal court here to order the Wall Street bank to buy back $72 million in failed residential mortgage backed securities it sold to the credit union insurer’s MEMBERS’s Life Insurance Co. and CUMIS Insurance Society units.

ST. PAUL, Minn. – Affinity Plus FCU has sold $140 million of residential first mortgage loans through a participation deal engineered by Mortgage Liquidity Solutions, a start-up Denver CUSO Affinity Plus partially owns.

CLEVELAND – Century FCU has signed with CampusDoor to provide the company’s customized private student loans to members through its CU Student HELP Smart Option offered by Sallie Mae.

South Carolina FCU is offering to beat just about any mortgage loan deal in the country with its Mortgage Loan Guarantee.

The CUNA Lending Council has release a new white paper: "Collections in a Post-Recession Environment," based on information gathered from lending and collections leaders at six credit unions as well as two experts from companies that provide outsourced collections services for financial institutions.

Don't let habit steer members into one type of mortgage, when another would be better.

WASHINGTON – Home loan rates declined to new depths again this week, as the benchmark 30-year rate remained below 4% for the sixth week in a row, according to Freddie Mac.

DMCU has offered its "No Credit Check Easy Loan" since 2007, but sought to "raise the ante" this year when it more than doubled the amount of funds available as part of the specidl program.

The numbers make clear how broad the gap is between the yield on investments and the yield on loans. Bridging that gap in 2012, notes one person, will come down to credit union staff.

Establishing a consistent lending experience across all delivery channels will help credit unions garner a bigger share of their members' loan business this year.

When it comes to lending in 2012, one person is advising that capturing business loans from the big banks could be the biggest opportunity available.

Pointing to a "backlog" of consumer credit needs, Dennis Dollar is cautioning credit unions to avoid becoming too risk averse in 2012.

In 2012 expect to see only more usage of automated analytical and business intelligence tools to better manage lending portfolios, address risk, and get more quality loans out of their members.

Mobile banking has seen remarkable advances in recent years, but largely has not included lending. Expect that to change as soon as 2012, according to Mark Nelson, Loanliner sales specialist for CUNA Mutual Group.

One person has some advice that many credit unions haven't heard in awhile: Lending should pick up in 2012, meaning adequate deposits must be on hand to keep pace.

It may not be a strategy that works for all, but Red River Employees FCU here is planning to take a bit more risk with its lending in 2012.

As the auto lending market continues to get tougher, credit unions have to find more ways to stand out beyond simply offering a low rate.

Instead of cutting rates to battle tough consumer lending competition, CUs will need to gain greater relevance in the minds their members and communities in order to generate more loans.

CUs are ignoring a $56-billion lending opportunity, one analyst contends. That is the size of the market for small-dollar, short-term automated loans that companies such as BillFloat and BillMeLater are targeting.

1st Financial FCU here had a dozen merry days with its "12 Days of Christmas Auto Loan" special.