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For more information:
Maripat Blankenheim 608.232.6539 maripat.blankenheim@cunamutual.com
Rick Uhlmann 608.231.8940 rick.uhlmann@cunamutual.com
Nov. 2, 2009
Tenth Annual Awards Presented at CUNA Lending Council Annual Conference
SAN DIEGO - Five credit unions were recognized for their lending prowess Monday by receiving CUNA Mutual Group's Excellence in Lending Awards at the 15th Annual CUNA Lending Council Conference.
CUNA Mutual Group's Dan Kaiser, vice president of credit insurance products, presented the 10th annual awards to:
- New Orleans Firemen's Credit Union, Metairie, La. - Consumer Lending, Assets less than $250 million
- Rogue Federal Credit Union, Medford, Ore. - Consumer Lending, Assets more than $250 million
- Mayo Employees Federal Credit Union, Rochester, Minn. - Mortgage Lending, Assets more than $250 million
- Erie Federal Credit Union, Erie, Pa. - Business Lending
- St. Louis Community Credit Union, St. Louis, Mo. - Low to Modest Means
CUNA Mutual, with support and expertise from the CUNA Lending Council, established the Excellence in Lending Awards in 2000 to recognize credit unions that have implemented outstanding lending programs while demonstrating sound financial performance. The awards provide an opportunity for credit unions to share best practices and ideas, build networks and recognize and celebrate lending excellence.
The Excellence in Lending Awards are presented annually in conjunction with CUNA Lending Council's conference. Commentary from the judges on the award winning programs and products follows.
New Orleans Firemen's Credit Union's lending strategy propelled its loan business beyond expectations. Under the leadership of a new lending director, changes were made to address identified problems within the previous consumer lending structure. The result is the "highest loan volume increase our credit union has seen in 75 years," setting New Orleans Firemen's CU on pace for a $10 million increase in its loan portfolio for 2009. A new loan pricing matrix provides loans to members unable to secure them elsewhere while realizing the highest loan yields than ever before. Members benefit from new and enhanced programs, including Lifeline Advance Loan, an alternative to the payday lending cycle, and Tuition Line of Credit, making education more affordable for their members. To say the lending strategy paid off is, indeed, an understatement.
Rogue Federal Credit Union doesn't just tell members to "keep what you've worked so hard for," it helps them be successful. Located in Southern Oregon, an area ranked second nationwide in unemployment, Rogue partnered with the local Home Builders Association and NewsWatch 12 to create Building Hope, a foreclosure prevention and assistance program to help families keep their homes through financial counseling. Rogue Solutions followed with a personalized approach to debt consolidation and restructuring. The results were more loans and fewer delinquencies. In one year, loan growth increased more than $12 million, share growth increased more than $5 million and the credit union added nearly 700 new members. By changing the culture to fit the times, Rogue met members' needs while enhancing its bottom line.
Mayo Employees Federal Credit Union grew its mortgage business by staying true to its 76-year sponsor - the Mayo Foundation of Rochester, Minn. - and the credit union credo of serving the underserved. In MEFCU's case, the underserved were resident physicians at the Mayo Clinic, who typically carry more than $150,000 in educational debt while earning a median salary of $45,700. MEFCU established the successful resident mortgage loan program, which provides discounted origination fees, 100% financing and credit without bias to 'No Score' and foreign resident physicians who otherwise would not qualify for a mortgage. Their overall results are staggering: A 28% increase in volume from 2007, leading to a record-breaking 2008 with income from mortgages totaling $649,683. Income results eclipsed the budget by 30% even with discounted origination fees and rates.
St. Louis Community Credit Union understands the need to accept and manage additional risks without compromising the credit union's financial strength. This is a daunting responsibility when serving a low-income marketplace. St. Louis Community CU responded with products and services with its membership in mind - a payday loan alternative, a credit builder loan, a credit check-up service and a second-chance checking account. As a result, the credit union's average loan portfolio for its Freedom payday loan alternative went from $254,000 in 2007 to $473,500 this year with a total loss percentage of 1.3% compared with 2.25% in 2007. As a trusted, viable financial resource, St. Louis Community CU is truly helping its members improve their standard of living through innovative programs and affordable products.
Erie Federal Credit Union made 2008 a pivotal year by initiating a strategic marketing plan to increase business lending and business relationship accounts. The comprehensive plan paid off. Erie FCU experienced 32% loan growth, increased average loan balances and a jump in loan-to-share ratio from 55% to 64%. The incorporation of a non-traditional marketing plan helped significantly, driving hundreds of potential members to the credit union Web site. Given the challenging economic times, Erie FCU is commended for effectively managing the risk associated with a new business lending approach while maintaining a sound, organized and conservative financial picture. A good product line coupled with valid competitive analysis positions Erie FCU for future success.
Judges and the categories they reviewed included, consumer lending: Rich Trace, director of product management, CUNA Mutual; Mike Long, vice president of lending, UW Credit Union, and Fawn Terwilliger, vice president of lending, Service Credit Union; mortgage lending: Tom Keepers, director of credit insurance products, CUNA Mutual, Phil Greer, senior vice president of loan administration, State Employees' Credit Union, and Bill Vogeney, senior vice president and chief lending officer, Ent Federal Credit Union; lending to low/modest means: Dan Kaiser, vice president of credit insurance products, CUNA Mutual, Aaron Bresko, vice president of lending, BECU, and Mark Wilburn, senior vice president and chief lending officer, 66 Federal Credit Union; business lending: Rich Fischer, director of lending, CUNA Mutual, Lloyd Gill, executive vice president and chief operations officer, City County Credit Union, and Keith Reynolds, vice president of lending and business services, Citizens Equity First Credit Union.
CUNA Mutual Group is a leading provider of financial services to cooperatives, credit unions, their members and valued customers worldwide. With more than 70 years of market commitment, CUNA Mutual's vision is unwavering: to be a trusted business partner who delivers service excellence and customer-focused, best-in-class products and market-driven innovation. More information on the company is available on the company's Web site at www.cunamutual.com.
The CUNA Lending Council is a community of credit union lending professionals dedicated to being the primary source of the best lending practices and educational opportunities in the industry.
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