Lending

Growing stress in the housing sector and more lenient underwriting standards have contributed to indirect auto loan delinquencies jumping to a 16-year high, according to the American Bankers Association (ABA).

WASHINGTON - Credit un-ions looking to lend the green in 2008 should be thinking green.

WASHINGTON - The problems in residential mortgages are not showing up yet in commercial real estate, with the exception of slight increases expected in 2008 in real estate vacancies in some markets, according to the Commercial Real Estate Outlook of the National Association of Realtors (NAR).

RANCHO CUCAMONGA, Calif. - Terrin Mendivil believes the tightening lending standards in most markets represent yet another opportunity for credit unions in 2008. She said CUs will have a chance to attract new members.

RANCHO CUCAMONGA, Calif. - While some have forecast a recession in the U.S. for 2008, Terrin Mendivil, economist and industry analyst for the California and Nevada CU Leagues, does not agree. That isn’t to say, however, that the picture is rosy.

MADISON, Wis. — With the national attention turned to problems in mortgages to low-income borrowers and a high number of foreclosures, a credit union-backed program aimed at that same market continues to have slow but steady success.

HIGHLANDS RANCH, Colo. - With the government stepping in proposing several bills to try to resolve the mortgage crisis (see related story, above), credit union leaders have mixed reviews about the government’s involvement and how it could affect both members and credit unions as mortgage lenders.

WASHINGTON - The House Judiciary Committee narrowly passed a bankruptcy reform bill last week that would allow bankruptcy court judges to restructure subprime mortgages under Chapter 13.

WASHINGTON - Some credit unions do make and have made so-called “non-traditional mortgages.” According to CUNA:

ALEXANDRIA, Va. - NCUA last week delayed the sale of Norlarco CU, just as it was preparing to auction off the failed $380-million credit union.

RANCHO CUCAMONGA, Calif. - Daniel Penrod is an industry analyst for the California and Nevada Credit Union Leagues. The Credit Union Journal sought his assessment of the credit crunch and the problems in the mortgage lending space.

FEDERAL WAY, Wash. - Credit union participants in the failed Centrix Financial subprime auto loan program are reluctant to turn over the loans for sale–just yet.

ARLINGTON, Va. - During the recent run-up in home prices (approximately 2003-2006 in most markets), consumers reportedly were using their home equity to pay off auto loans, or even to purchase cars, but credit unions can expect to see that activity taper off, if it hasn't already.

FORT LAUDERDALE, Fla. - Although credit unions have placed different types of holiday loans under their respective trees, they are reporting one common trend--members are definitely borrowing to pay for holiday shopping.

ARLINGTON, Va. - In his analysis of vehicle lending trends, NAFCU Economist Dr. Tun Wai noted that while vehicle sales actually increased slightly to 16.2-million annualized units in November, the year to date average of 16.1-million units is the slowest pace since 1998.

AUSTIN, Texas - Auto sales are declining and the percentage of auto loans funded by credit unions is down from its peak two years ago, but one insider says CUs have responded by diversifying their lending portfolios and leveraging their strength as local relationship builders.

PITTSFIELD, Mass. - Greylock Federal Credit Union has launched an auto loan product for consumers with impaired credit but who also have a willingness and ability to make their loan payments.

HIGHTSTOWN, N.J. - New Jersey's Department of Banking and Insurance and Department of Community Affairs, along with representatives of financial services institutions in this state, have announced a public-private alliance designed to both educate and assist New Jersey homeowners.