By Lisa Broadwater, Manager of Consumer Lending Product Development, Eastman Credit Union

Since December, 50 firms have pulled out of writing federally-backed or private student loans. In April, giants Bank of America and Citicorp announced pullbacks – Bank of America said it would stop writing private student loans, and Citicorp’s said it would stop writing ones at schools where paybacks were unsatisfactory as well as stop writing federal student loan consolidations altogether.

 Eastman CU has had a private student lending program (it does not write federally-backed student loans) since 1989. Eastman’s is now the largest such program of all U. S. credit unions at 1,758 on the books for $26 million (average balance about $29 thousand). The student loan program has been growing at more than 20% a year.
Continue Reading The Nation’s Largest Credit Union Private Student Loan Program »

By Mike Werstuik

Many call today the best buyer’s market in decades.  With interest rates reasonably low and prices down from the housing boom’s peak, the time to purchase a home is now…as long as you can get a loan.  The Federal Reserve’s March Senior Loan Officer Opinion Survey reported that 60 percent of the institutions surveyed have tightened lending standards on prime mortgages.  So while it may be a great time to buy a house, mortgages are harder to be approved for than they were in the past. 

The major focus in the media and within the financial services industry has been the refinancing of troubled mortgages.  The often-overlooked opportunity is in the purchase market.  And credit unions are in prime position to take advantage due to their avoidance of subprime lending and the fallout plaguing banks and others. 

Continue Reading There are Opportunities in the Purchase Market Too! »

By Dane Coalson

United Federal Credit Union, $794 million, St. Joseph MI, started a complementary budget counseling service in 2003. Judy Baker initially started working with distressed members to help prevent bankruptcy filings. Due to its initial success, the program was expanded to include those who recently lost their jobs, requested budgeting assistance, or any member or non-member experiencing financial distress.  According to Baker, “Many people don’t communicate with creditors when they are financially challenged. I tell them that this is not the answer and encourage them to contact their creditors and to utilize the counseling service.”

Publicizing the Program 

It actually started internally with credit union employees. Once the program was explained to the staff, they were excited, and took it upon themselves to spread the word. Employees started to listen and pay attention for signs that a member was financially distressed, and they would refer them to the Budget Counseling Service. News about the service has spread by word-of-mouth in the community. Many heard about it from family members and friends, but local news media also picked up on it.

Continue Reading Putting Families Back on Track »

By Dane Coalson

State Employees’ Credit Union (SECU) of Raleigh, N.C., ($15.9 billion) introduced a Million Dollar Sweepstakes in 2007 to encourage member checking account holders to convert from paper statements to e-statements. The Sweepstakes was intended to educate members on the cost to their credit union each month to print and mail paper statements and how members directly benefit when SECU is able to improve efficiency. The Million Dollar Sweepstakes began in January 2007 and ran through December 7, 2007. In order to dissuade members from switching to e-statements to become eligible for the contest and then switching back, the contest was scheduled to last a full year. Over the course of 2007, one hundred members won $5,000 a piece and 20 lucky members won $25,000 each. The first drawing was held in February, and eleven subsequent drawings were held through December 2007, resulting in $1,000,000 in member awards. 

Continue Reading Cash to Lucky Members, Savings to the Credit Union, Members and the Planet »

By Dane Coalson

Altura Credit Union ($940 million) is located in Riverside, Calif., at the epicenter of the housing crisis. Despite the difficult economic environment, Altura grew in 2007 while maintaining a high level of service and reaching out to members in distress.

Addressing the Housing Crisis:
At the end of 1Q 2008, NCUA examiners wrote Altura: “Try to keep your members in their homes if at all possible.” The examiners suggested loan extensions as a way to alleviate the financial strain on distressed members.

In February, Altura and their CUSO, Patrion Mortgage, held a public seminar for persons in the community who were having trouble meeting their loan payments. About 100 members and non-members attended. At the seminar, the credit union gave a presentation covering various options individuals could pursue to manage their debt and mortgage payments. Afterwards, some attendees asked for assistance; they answered questions from Altura loan officers and filled out loan applications. The loan officers then appraised the properties, evaluated the information, and presented loan proposals to the credit union.

Continue Reading Helping People with their Mortgage Problems »