When rate is overrated

Credit unions are in a unique position to dominate the most fertile market in lending, all while adding and serving the members they are built to benefit.

Question: Would you ask your mortgage lending department to prepare a loan for a member buying a 200-unit apartment complex? Of course not. You’d never say ‘a real estate loan is a real estate loan’ when commercial and residential have so little in common.

So why approach auto lending as ‘an auto loan is an auto loan’?

When serving members with less stable credit, why apply the same rules and assumptions designed for prime borrowers? This one-size-fits-all approach may be keeping too many credit unions from thriving in one of the fastest growing markets in consumer lending.


Join Proforma CEO Kirk Bowman on Thursday, January 20 – 2:00 ET / 11:00 PT and learn to avoid 5 common misunderstandings about lending. Aligning loan terms with the priorities of your near-prime borrowers will add new life to your credit union.