Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
CUs auto loan workout options aid struggling members
EUGENE, Ore. (3/23/09)--Northwest Community CU has seen its auto repossessions double in the past two years, but says it is still happy to lend. To help, it is providing its members with several loan workout options. Northwest is allowing members to skip two loan payments per year, and hundreds of members have taken advantage of that offer. The credit union also sent direct mailings to members last fall letting them know they have options. “We’ll find ways to make things work,” Matt Purvis, Northwest vice president of marketing told News Now. Some other options Northwest offers include interest-only payments for several months, no payments for several months, or reduced payments. So far, 120 have taken advantage of the modifications. “We’re promoting this,” Purvis said. “We’re telling members, ‘Don’t wait. Come in and let’s talk.’” During the first half of 2007, Northwest averaged about 28 repossessions per month. In 2008, that figure jumped to 66. Of those 66, more than half were voluntary. There are 32 additional auto loans--totaling about $500,000--pending in Northwest’s rework file. From last fall to March, Northwest altered more than $2 million in auto loans. But those loans made up only 1% of the credit union’s auto loan portfolio. Modifications are “a lot of work, and use a lot of people,” he said. “The numbers are holding steady,” Purvis said. “We haven’t seen it tail off yet, but we’re looking forward to that day.” Layoffs and a slow motor home and wood products industry have rippled across the region. Northwest was originally created to serve wood products workers. “It’s very slow,” Purvis said. “It’s never been what it was.” Many defaults have resulted from layoffs or significant pay cutbacks. Often two-income families have lost one income, making it tough for members to pay their bills on time. Northwest watches local and regional news for industry cutbacks and keeps in touch with members whose jobs may be in danger. And although auto lending is slow, the credit union keeps expanding its portfolio. “We’re very active in commercial loans and are promoting Invest in America,” Purvis said. Invest in America is a national program by that offers auto loan discounts to credit union members through General Motors and Chrysler. “We’re trying to raise our profile and let people know we’re investing in communities,” he added.
Other Resources

RSS





print
News Now LiveWire
.@CUNA's @Nussle on @SenatorReid :(2of2)On behalf of more than 102M #CU members,I thank him 4 his leadership over the yrs/wish him the best.
29 minutes ago
.@CUNA CEO Nussle on Sen. Reid’s decision not 2 seek re-election (1of2): Sen. Reid has a long history of #CU support throughout his career.
33 minutes ago
#Jobless claims duck under 300K for 3rd straight week #Market #Economy http://t.co/jOsZWf9HNJ
38 minutes ago
62% worry about financial stability: @CUNAMutualGroup study http://t.co/5jCM1I1hnA
2 hours ago
.@nytimes reports Sen. Harry Reid, Senate Democratic leader since 2005, will not seek re-election next year,
3 hours ago