One CU’s Experience Funding Loans Through Dealers.
|
|
There are some dangerous pitfalls to getting involved with auto dealers, but if a credit union is savvy and careful, the advantages of an indirect lending program are well worth it, according to one speaker at the National Association of Community Credit Unions’ Annual Meeting. “There are a lot of great opportunities to be found in indirect lending,” said Ron McDaniel, CEO of Point Mugu FCU, Oxnard, Calif., which previously managed its own indirect lending program but now now also works with CU Direct Lending (CUDL). “But you don’t want to jump in blind.” Where The Opportunities Lie Those opportunities include more loans, new members, better asset/liability management, diversity of the loan portfolio and even finding a community service partner in those auto dealerships the CU teams up with for indirect lending. “You will be very surprised-and pleasantly so-if you give the dealers the opportunity to sign up members for you,” McDaniel noted. “And working with the dealers on community service efforts can be a big… |