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LenderHub

SWBC's LenderHub blog is a one-stop resource for lenders.

 

Use Loan Protection Products to Accelerate Sales

2018 is shaping up to be a slower year for auto sales and lending after two years of record-setting sales. Interest rates are increasing, and while those increases aren’t jaw-dropping, they’re likely to stop some auto buyers and borrowers from replacing their vehicles.

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Depreciation Benefits of Vehicle Protection Products [Infographic]

Some things, like fine wine, get better with age. Unfortunately for vehicle owners, cars rarely get better with age. In addition to losing significant value immediately after driving off the dealer's lot, new cars depreciate 15-25% each of their first five years, according to Edmunds.com.

After a total vehicle loss, your institution's members are increasingly finding themselves owing more on their vehicles than the vehicles are worth and receiving significantly depreciated settlement checks.

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Take Your Direct Lending Game to the Next Level

After years of record-breaking growth, 2018 looks to challenge auto dealers and lenders with the first significant decrease in auto sales since 2009. Some analysts are even calling for up to a 5% decrease compared to 2017 numbers. As the industry braces for fewer sales in 2018 and beyond, consider how vehicle protection products can make the difference to your financial institution's bottom line and deliver exceptional member value and security for their investment.

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How One Financial Institution Increased Their Payment Transactions By 43%

When a financial institution expands its products and services in one area, the residual effect in other parts of the institution likely requires a reaction. This was the case at USALLIANCE Financial. Their team saw rapid growth as a result of increased indirect lending efforts, which required the team to react to their members' needs. The need to support these new borrowers with an effective loan pay platform became a challenge for USALLIANCE.

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CU Industry Stats and Performance Trends: Q2 2017

Analyzing data is a critical component for planning for the future. CUData.com has recently released their Credit Union Industry Statistics and Performance Trends Report for Q2 2017. I'd like to share some highlights of the report with you and your financial institution. There's a lot of positives in the data below. Although the number of credit unions fell slightly, credit unions with $500M+ in assets grew slightly. Direct and indirect auto lending continues to be a bright spot and looks to be the greatest opportunity for growth for credit unions. We are also happy to see credit union membership continues to be on an upward trend. 

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Gain a New Perspective on Credit Life Insurance

In the financial services industry, it is widely known that credit life insurance pays off the outstanding loan balance to which it is attached. But have you ever really realized how credit insurance is a key component in serving American households who may have no life insurance at all—that is, up until the point where you, the lender, offer it. According to LIMRA’s 2016 Life Insurance Ownership Study, 37 million households don’t own any life insurance coverage whatsoever. In addition, more than 10% of all U.S. Households said they would have trouble covering everyday living expenses after several months if the primary wage earner died. I think it would be safe to assume that the primary wage earner was definitely the borrower or co-borrower on their existing loans.

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How the Housing Market Could Impact Your Credit Union

The housing market is constantly fluctuating. As a lender, knowing ways to maximize your home equity portfolio and extending loans to qualified borrowers is of the utmost importance. But, it can be difficult and frustrating when you are having to turn away quality candidates due to stringent loan approval standards. A solid understanding of the housing market AND working with partners who allow for more flexible lending guidelines can help increase your financial institution’s home equity portfolio.

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Credit Card Compliance: The Military Lending Act

The Military Lending Act (MLA) was created to protect active duty members of the military, their spouses, and their dependents from certain lending practices that could pose a risk and a possible threat to military readiness as well as affect the retention of military service members. Since the inception of the MLA in 2006, there have been a number of changes to the program’s rules and regulations. In 2015, the final rule was announced which involves expanding the types of credit products that are covered by the 36-percent rate cap and other military-specific protections covered under the MLA. These changes can have a major impact on financial institutions if they are not compliant to rules that affect this act and credit card accounts.

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Prepare for New HMDA Reporting Requirements

The deadline for expanded reporting requirements for the Home Mortgage Disclosure Act (HMDA) is coming soon, and it is important that your financial institution is prepared. More credit unions will have to report data to comply with this act and the data points will become more numerous. For some, the reporting will come every three months, instead of annually. So, it is important to know about this act, the new reporting requirements, and how it will affect your financial institution.

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Delinquencies Are Increasing: What it Means for You

The auto loan industry is massive and chances are that if you are a financial institution, you are also in the auto loan lending game. For the first time in first-quarter history, open auto loans have surged past $1 trillion per market research firm, Experian Automotive. Due to their findings, they have advised lenders to “keep a close eye on delinquency trends to ensure the market remains healthy.” Should consumers keep making timely monthly payments, the market has a greater chance of maintaining affordable financing options. While auto loans can offer profitability for a financial institution, there are also some downfalls and risk when it comes to the lending industry. In recent years, the auto-loan industry has seen a rise in delinquencies. And, of course, this is never a good thing for financial institutions. 

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