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Texas CUs told Ask right questions on loan strategies
AUSTIN, Texas (4/29/11)--Determining an appropriate lending strategy requires credit union leaders to ask themselves the right questions, based on their members’ needs and continually advancing technology, says CUNA Mutual Group.
Click to view larger image CUNA Mutual Group Sales Specialists Mark T. Nelson (left) and Robert Israelite speak to members of the Texas Credit Union League at their 77th annual convention and expo. (Photo provided by CUNA Mutual Group)
Evaluating considerations and presenting options were only part of what CUNA Mutual’s Robert Israelite and Mark Nelson shared with members of the Texas Credit Union League Thursday at the league’s 77th annual meeting and expo. Israelite, a sales specialist, told the workshop attendees to consider open-end and closed-end lending when developing their approach to lending. While both are legitimate lending options, they have different disclosures and documents, he said. “What you want your members’ lending experience to be will be one of the strategic questions to consider when deciding your lending approach,” Israelite said, adding that a one-size-fits-all approach is not right for all credit unions. While closed-end lending takes a traditional approach, open-end lending allows the process to be conducted remotely. The convenience and simplification can be a differentiator for members, said Nelson, also a sales specialist. Nelson added that progress in technology--Internet lending, electronic signatures and mobile lending--add to the opportunities available. “The advancements in mobile lending and electronic signatures will change the way your members borrow,” Nelson said. “Your credit union needs to be ready.” Because the lending landscape continues to change due to regulatory and technology influences, Israelite and Nelson recommended credit unions answer these questions when planning a lending approach:
* What does the credit union want its members’ lending experience to be? * What products does it offer? * How do members prefer to close loans? * What is the credit union’s position on remote lending channels? * Where does the credit union lend? Different states have different regulations. * How comfortable is staff with regulatory ambiguity? * Does the state allow electronic filing of titles? * How strong and competent is the credit union’s compliance support?
Nelson suggested credit unions engage their compliance and operational partners--data processor, document provider, legal adviser--and answer thought-provoking questions to determine their consumer-lending approach.
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