We are considering increasing the amount of C & D paper loans we put on the books (with consideration to the likely recession happening in the near future). Knowing all CUs are different and some have different tier ranges, I was wondering if you'd provide information that demonstrates the credit tier breakout of the loans you put on the books. We are trying to gauge how conservative we are compared to others. Right now, about 85% of approved loans are in the A and B tiers, and our loan yield reflects that. There are a lot of variables involved, however if you'd be able to share information on this topic, it would be appreciated. Thank you for your consideration.
Brett Noll Chief Executive Officer O: 410.281.6232 | F: 410.281.6207 www.securityplusfcu.org Securityplus FEDERAL CREDIT UNION
I hope other CUES members will chime in with the data you're after. A couple of CUES resources came to mind when I read your question:
We just published this podcast with Jamie Strayer about how a CDFI designation and the funding that can go with it can be helpful to CUs that want to make loans to members with lesser credit.
CDFI Status Is a 'Carrot' for Innovation-and a Possibility for More CUs Than You Might Think
Some of the articles Bill Vogeney of Ent CU in Colorado has been writing for me lately might also be of interest.
Lending Perspectives: How Will You Fund Future Loans?
Lending Perspectives: Why Risk-Based Decisions Are Hard
Lending Perspectives: The 5 Cs of Small-Dollar Lending
Hope something in this is useful.