Lending In Today’s Challenging Economy Methods for Growing Loans & Increasing Yield

League of Southeastern Credit Unions

October 11, 2011

Presented by Ed Swanson

Lending Solutions Consulting, Inc.

Ed Swanson, Vice President/Consultant

Lending Solutions Consulting, Inc

Ed Swanson is a 28-year veteran of the financial services industry and a 25-year

veteran of the credit union industry. He has spoken for over 35 Credit Union Leagues

throughout the country on a variety of lending and member service related topics.

Swanson helps credit unions to strengthen themselves in areas of consumer lending,

loan underwriting, risk based lending, mortgage lending, indirect lending, collections,

sales development, member service and incentive programs. Swanson was also an

annual instructor at the CUNA Consumer Lending Management School for seven years

and has been a featured speaker at CU Conference's, 'Focus on Lending' conference

for the past twelve years.

Ed Specializes In (But not limited to):

● Lending in Today’s Marketplace

● Underwriting Higher Risk Loans

● Risk Based Pricing

● Home Equity Lending

● Improving Delinquency Numbers

● Payday Lending

● Serving Members of Modest Means

● Sub-Prime Lending

● Cross-Selling that Actually Works

● Implementing an Incentive Program

● Building a Sales Culture

● Understanding Credit Scoring

● Auto-Lending

● Building Member Relations

“Ed Swanson is as well versed in

lending, collections, mortgages &

sales as anyone you will ever meet.

He has spent his entire career in the

credit union movement. At Baxter

CU, Ed and I worked side by side in

all phases of lending, collections,

mortgages, & sales & achieved world

class results. Delinquencies &

charge offs were both below .2% with

a 91% loan-to-share ratio. You will

absolutely love Ed, we guarantee it!”

Rex Johnson, LSCI Founder

eswanson@rexcuadvice.com

www.rexcuadvice.com • 800.937.4249

• We‟ve lost our appetite for lending

• We don‟t know which loans and what grade of paper is

profitable

• Credit unions have become reactive, not proactive

• It‟s become so easy to say no and climb into our “No” Box

• Our focus has been on reducing delinquencies and

charge-offs, not building loans

• We‟ve eliminated employee incentive programs

• We‟ve lowered the „Bar of Expectations‟

-If our delinquencies & charge-offs are lower than the peer

group, then we’re happy

-Positive earnings of any kind are good in today’s climate

• Have we forgotten what the founding fathers had in mind

when the credit union movement was founded?

Why Credit Unions Aren’t Making Loans

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NEW YORK, July 12, 2010

More Americans' Credit Scores Sink to New Lows About 1 in 4 Consumers With a Credit Account Has a Credit Score of 599 or Lower

The latest analysis by FICO Inc., based on consumer credit reports as of April, shows that millions more Americans have credit scores that could prevent them from getting credit cards, auto loans or mortgages under the tighter lending standards banks now use. Restricted access to credit is one reason for the slow economic recovery.

About a quarter of consumers - 25.5 percent, or nearly 43.4 million people - now have a credit score of 599 or below, marking them as poor risks.

That's a big jump over the historical rate of 15 percent of the 170 million consumers with active credit accounts (or 25.5 million people) falling below 599. Yet, the number of consumers who have a score of 800+also increased in recent years.

Americans' Credit Scores Are Getting Worse

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• But… are these people really “poor risks?” There’s never been a better time to make loans than now.

• Most lenders are tightening up, consumers still need loans, members need our help now more than ever.

• Recent Headlines in the USA Today articles read:

“Criticism Rains Down on Mortgage Industry”

“Frustration Grows Over Pace of Help for Homeowners”

“Credit Drying Up For American Consumers Making it more Difficult to Get Approved for a Loan”

• Members should be able to turn to a credit union as they have no where else to go and will wind up paying a predatory interest rate

Thinking Outside the ‘No’ Box

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The number of Americans who now score in the 500’s or lower range has increased by 67% and now makes up 25% of all Americans. That is a staggering number…

Who is going to serve these people if credit unions can’t? Payday Lenders? Subprime Lenders?

Serving All Members & Taking Risk

Credit unions cannot survive without growing loans and increasing their loan yield. Less focus has to be placed on the member’s credit score and more emphasis placed on the member’s qualifications and the probability the member will pay the credit union, even though they may not pay everyone else in a timely manner.

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Credit Unions need income — more now than ever!

Investments are earning at best 1-2%.

It has to come from our loans. Taking risk cannot be an option!

Why Credit Unions Need To Change

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Why Credit Unions Need To Change

• Credit Unions Need:

-Loan growth

-Loan yield

-Earnings

• Your members never anticipated what was

ahead with the state of the economy and

would probably have made different decisions

had they known.

• A lot of good, honest, hardworking members,

who paid their bills are looking for a fresh

start. They are making a financial decision to

try to better their life, not a moral decision.

Someone is going to help them, it should be

credit unions.

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Growing Loans & Loan Yield

What can credit unions do to grow loans and increase loan yield?

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• Discontent is the first step of progress.

• Risk is the price you pay for opportunity.

Two Thoughts for Every Credit Union

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High Yield Lending Strategy (HYLS) It’s Time to Change Credit unions should embrace a strategy that will allow them to: • Serve all their members by making loans available to everyone, regardless of their credit

score. • Significantly improve their bottom-line; most credit unions can double their loan income of

they are willing to do the work. • Start growing deposits, loans, and assets and members. • Reduce staff turnover and improve morale by paying above average wages.

Why is This Necessary? Membership, earnings, loans and deposits are continually dropping. Members are turning to payday lenders because credit unions have not stepped up. We have become way too “bank like” and we are more focused on getting a good exam than serving our members. The average credit union is turning down many existing members because they are too risk adverse.

Why Now? Even with courtesy pay, credit union’s earnings keep falling every year. I challenge you to: • Look at your R.O.A. over the last five years • Subtract out courtesy pay and overdraft fees • Compute your R.O.A. without courtesy pay and overdraft fees • Ask yourself what you are really making and what will happen if you can no longer

offer courtesy pay the way your currently offer it. • Now, should you be concerned?

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How To Build Your Loan Yield Making Loans to All of Your Members

• Measure the employees’ performance based on loan volume and net loan yield.

• Train employees how to take risk and when to take risk.

• Create a sales culture and reward employees with meaningful incentives.

• Let members and employees know that lending is our #1 priority... “We have $ ___ Million to lend!”

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We should be looking for a lifetime relationship with our members, not simply one and done, and not just when the their credit score is high. Credit unions that teach their employees to focus on relationship lending will prosper, while those that do not will struggle.

Relationship Lending

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We believe this page is the most important page of our loan policy.

Our Board of Directors, our various Committees, Senior Management Team

and staff all support this philosophy. All of our new employees or volunteers

will read and have explained to them what this philosophy means and will

subscribe to this philosophy.

It is the philosophy of (Insert Name) Credit Union is to help as many of our

members as possible with their credit needs. Our credit union believes in

relationship lending. We have strong evidence, based on years of experience,

that members pay us when they do not pay others. While we will not ignore

the fact that others may not be getting paid, we also will not solely use

that as a reason to deny the loan if it is evident the member has and will

continue to pay the credit union. The credit union will also consider a

member‟s credit score, but will not deny a loan due to a credit score. The credit

union understands that credit scores are very volatile, and can and will change

quickly. Our mission is to counsel our members, showing them how to

dramatically improve their credit scores and show them how to pay us less.

Credit Union Philosophy

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We believe lending has been and still is a judgment business.

While we will instruct our staff to use good judgment in decision making, they are not to judge a member’s character.

None of us are qualified to judge someone’s character: -Bad things happen to good people -Our members can and will make mistakes -Our members deserve a chance to get a fresh start

Credit Union Philosophy Continued…

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The only reason a member should ever be turned down is when loan officers/decision makers believe the member will not pay the credit union. We expect our employees to be honest with the members in communicating their decisions and then to listen to the member’s response. Finally, we believe that training our employees has to be our highest priority and under no circumstance will we compromise training. Our members deserve to talk to highly motivated and highly trained employees who are positive and really care. This is our philosophy of ______ Credit Union

Credit Union Philosophy Continued

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Share the Good News Story of Your Credit Union

How do your members know that you are different than other financial institutions and that you

really want to help them out?

Show them!

Market to them!

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When they: Give us all their business. Have been active members for years. Paid us even though they did not pay others. Depend on us and need our help. Are willing to pay a rate consistent with the risk the credit union is taking

according to their credit score.

Before turning a member down, the credit union must: Start talking to the members and listen. Ask the right questions, not just the questions on the application. Get to know your members; they will open up to you if they believe you’re

trying to help. Find out what they are driving. Is it paid for? Mileage and condition? Can it

be used as collateral? -Do we have an opportunity to pay it off? Find out the member’s motivation in applying, ask why now and why the

credit union.

Motivation is the Key to Making Good Loans!

Existing Credit Union Members Be willing to take risk with long-term members who have less than perfect credit:

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Finding out the member’s motivation allows you to uncover the true intent of the borrower and ideally the true intent of repayment.

Questions to Ask New Members: 1. Why have you decided to open this account today? 2. Why the credit union now? (motivating factor) • Do they like our savings rates? • No fee checking? • Loans/Rates? 3. Who referred you to us? 4. Where are you banking now? 5. How have they fallen short on meeting your expectations? Note: Your Marketing Department should be sitting with employees during these interviews to see why the community is picking you. This will help them market the credit union more effectively. These new members can become a big asset in getting the word out that the CU is different and a terrific place to save and to borrow from.

Motivation Why Us? Why Now? Why Today?

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• Setting Limits on C, D, and E Paper — Why have a limit?

• Loan-to-Value Requirements:

• –Mortgages: Are we doing 100% LTV plus when good judgment dictates?

• –Car Loans: Remember, the higher the loan to value, the greater the risk. You must be very careful on high loan to values, yet you should be able to approve these loans when good judgment dictates.

• Unsecured Lending Limits: Credit unions are way too conservative!

• Income: Count both verifiable and unverifiable income as long as its apparent it exists.

• Terms: Pick your own payment as long as its in the best interest of the credit union and the member

• Age of Collateral: If it has value your should use it

• Members who Caused you a Loss: Most are due to bankruptcy and they cannot pay you if they wanted to. Their attorney will not approve the re-affirmation if its unsecured.

• Check Systems: You are denying service and loans because some bank lost money. You don’t even like the bank.

Policies have to allow you to use good judgment plus common sense. There must be some flexibility in your policies!

Loan Policies are Keeping You From Making Loans

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We are Programmed to Focus on What is Wrong First Before What is Right

• Make it a requirement that all application takers and decision makers talk about the positive points before the negative in their notes.

• Acknowledge what the member has done right before discussing the negatives on their credit bureau report.

• Highlight Users Highlight the “Good Stuff” instead of the “Bad Stuff”

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Hiring the Right People

In most cases, but not all, promoting or having an ex-collector to start making loan decisions won’t work. If you can find collectors who love lending as much as collections, then you have hit the jackpot.

You Want Lenders Who Are:

–Enthusiastic

–Positive

–Passionate

–Strong people skills

Decision Makers Must:

–Have a ‘yes’ we can attitude

–Be very creative in building a loan

–Be non-judgmental

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Do Not Hire Decision Makers Who:

• Are very judgmental.

• Use themselves as the standard, especially if their credit bureau score is 800 or higher. We applaud their personal efforts, however its not a realistic standard for most members.

• Do not have good listening skills.

• Are not comfortable with members and are not willing to ask hard or personal questions necessary to find a way to make the loan.

• Dwell on the negative and not the positive.

• Must always be right.

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Examiner Influence Previous Bad Decision Making Has Led to Tightening up

• Credit unions often grow loans in leaps and bounds due to indirect decision making

• Everyone is happy with all that new loan growth

• Initial results are positive

• Delinquencies and charge offs start increasing as a percentage of outstanding far faster than loans are growing.

• Examiners come in, meet with the Board and there goes loan growth

• We tighten up and the Board of Directors want the insurance this is never going to happen again.

The problem was not growing loans, it was growing loans without good training, staffing, and monitoring. Now every member is paying the price.

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What are You Measuring?

• Credit unions often measure the wrong things in analyzing their loan officers, such as:

–Delinquency

–Charge offs

• This encourages the loan officers not to take risk. As a result, marginal loans always get denied. Do not have Lenders also collect

• Start Measuring:

Employee A Employee B

Gross loan yield 5.0% 11%

Minus charge offs 0.2% 2%

Net loan yield 4.8% 9%

Loan volume $100,000/month $500,000/month

• This will encourage your employees to find a way to make the loan versus saying ‘no.’ Overly conservative employees are not good for the credit union or the members.

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• This was a $20,000 automobile loan application at a credit union

• Emily was 32-years old

• She had a 7-year address

• She had a 5-year job as a secretary to the high school principal

• There were no debts of any kind on the credit report

• Outstanding credit before the bankruptcy 740+

• FICO Score was 660 after the Bankruptcy

• Has had no inquiries or trade lines since the bankruptcy

• Had an active checking account at the CU with $3000 on deposit

• No returned checks or courtesy pay

• Last car loan was with a bank and Emily made 60 straight

payments with no missed payments

• Her existing car will be traded in and it is free and clear

Taking a Look at Emily A Former Bankrupt Member

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The Outcome The loan was denied by the credit union because of:

• A bankruptcy that took place 16 months ago

• No credit established since the bankruptcy of any kind

The “Counter Offer” to Emily was the following:

• Needs an acceptable co-signer (had to be a family member)

• A maximum amount financed of 80% loan-to-value

• A $15,000 maximum loan amount

• Must have direct deposit with the credit union

The End Result:

• Emily never came back for the auto loan

• A bank ended up with the loan and the relationship

The End Result

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However There Are Many Positives with Emily:

• The loan opportunity was there but we missed it

• We get a great yield – much better than investments

• She appears to have learned from the bankruptcy

• Emily has very stable residence and employment history

• We can show her how to get a good deal on buying a car at the dealership

• She knows a lot of people that she can refer to the credit union for a loan your members need to be advocates in bringing other business to you

Thinking ‘Outside the Box’

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• The sad reality is that there are lots of “Emily’s” out there at credit unions all over the country

• She paid her bills before the bankruptcy

• Her score would have been in the 740+ range before the bankruptcy

• She has no new debt in over a year

• Only one inquiry on the credit report

• Good job and stability

• Money in her checking account

• Would have gladly paid you a good rate

• Also needs a credit card to get re-established

Does Emily Represent a Risk?

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Ask Yourself: • Will you loan money to members who have caused you a loss? • Are you considering former bankrupts to make them car loans? • Would your employees have said “no” (as this credit union did)

if Emily’s credit score was “796?” We think 796 more accurately reflects the true risk of this loan; the credit bureau score was 660.

Relationship Lending: • Everybody pays somebody • Give the member a reason to pay you Many members will need credit after they go bankrupt: • Auto loans • Credit cards • Possibly a mortgage • Loans for their children’s education

What Can We Learn From This?

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Another Opportunity is Knocking! Your Members are Angry!

Members are finally seeing how they are

getting ripped off by the credit card

companies.

Show them why they need to switch to a credit union credit card

with you.

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What are Credit Card Companies Doing to Your Members?

• Raising Interest Rates

• Lowering Credit Limits

• Charging More Fees

• Increasing Late Fees & Over Limit Fees

• Increasing Minimum monthly payments

• Taking away Perk Programs (or charging

a higher interest rate to have one)

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Changes That Will Ensure You’ll Get All the Member’s Business:

1. Increase unsecured loan limits for members 2. Actively pursue credit card debt

consolidation loans, shorten terms 3. Offer Incentive Programs to your employees

to capture the banks credit card balances 4. Get your front line employees involved and

aggressively go after business at the teller line

4 Changes You Need to Make to Your Credit Card Program

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New Credit Card Statements

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“Trade In Your Credit Card Debt”

Pay us the same payment you are currently paying credit card providers and you will be out of debt completely in approximately 2.5 years.

Note: The above assumes 12.95% interest, a loan amount of $9600 with payments of $384.00 (4% balance) = Approximately 30 months.

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We MUST Transform How:

• Employees are trained – Need to learn how “dig deeper to interview your members and hear their story

• Lenders collect data – This will require a new loan application

• Lenders read/interpret the credit report and credit score

• Loans are underwritten by decision makers

• Loans are processed and closed

Implementing Change

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Rex Johnson

Looking Beyond What The Application is Telling Us

Even if you don’t utilize the HYLS Guide, you must embrace a High Yield Lending Strategy

at your credit union.

HYLS: High Yield Lending Strategy Automated Online Underwriting Guide

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We have strong evidence that many members pay their credit union and they

pay no one else, because they value their relationship with the credit union.

Credit Unions have a unique advantage: Direct deposit and payroll deduction.

HYLS Gives the Member Credit for:

• How long they have been a member

• Stability (residence and employment)

• Their savings with the credit union

• Highest dollar amount of prior loans, etc.

HYLS points out all the positive as well as the negative factors.

HYLS helps employees determine the negative factors in order to discuss

them with the member and get the facts, while acknowledging what they have

done right and looking at their positive factors.

Turning Fewer Members Down by Showing How to Build the Loan

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The key is not only asking the right questions, but how you ask them. What motivated the member to apply and why now? (Motivation is key) How did they get their last job? Do they like their job and why? Does the job like them and how do they know? What motivated them to buy a car now? How long did it take them to pick out the car they are buying? Do they know the value of the car they are buying? Do they have money to pay down? Do they have a trade-in? What is the mileage and condition of their trade? Do they have insurance? If not, what is it going to cost? How do they get around now if they do not have a car? How long did they have the car they are trading in? If the member’s debt ratio is too high, how will they make the payments? Do they

know what the required payment is? What payment will their budget allow? If they never paid anyone or they struggle to pay on time, what makes them

think we would be comfortable in loaning them money? If they are loaded with unsecured debt and probably are not going to make it,

will we still get paid if they go bankrupt?

Questions Not on the Application We Fail To Ask

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Factors

• Number of years as an active member

• Total dollar amount on deposit with the credit union

• Number of current & prior satisfactory loans in excess of $1,000 with the CU

• Highest dollar loan amount the member has had with the credit union

• Length of residence

• Length of employment

• Valid credit score

• Credit score with no credit flaws

• Loan to value on vehicle loan

• Number of vehicle loans in the past 24 months

• Inquiries in the past 24 months

• Number of open or closed trade lines in the past 24 months

• Total dollar amount past due with all creditors

• Payment history on most recent auto loans

Traditional Models

• No

• No

• No

• No

• No

• No

• No

• No

• No

• No

• Yes

• Yes

• Yes

• Yes

HYLS Guide

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

The Difference Between the HYLS Guide & Traditional Scoring Models

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Factors (continued)

• Loan amount vs. term

• New vehicle loan being purchased vs. annual gross income

• Total secured loan balances outstanding vs. annual gross income

• Debt to income ratio

• Total outstanding unsecured debt vs. annual gross income

• Total unsecured dollar amount outstanding

• Total mortgage debt vs. annual gross income

• Number of late payments on mortgage loans

• Available equity in real estate

• Cashing out real estate equity

Trad. Models

• No

• No

• No

• No

• No

• No

• No

• Yes

• No

• No

HYLS

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

• Yes

The Difference Between the HYLS Guide & Traditional Scoring Models

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• Member is 36 years old • Just divorced 8 months earlier • No children • Bankrupt 6 months ago • FICO Score before bankruptcy: 682 • FICO Score after bankruptcy: 539 • 14-year member with credit union • $2,800 on deposit with the credit union • Direct deposit of their paycheck • 4 previous loans with the credit union & highest dollar amount: $23,000 • Credit union suffered no loss as a result of the Bankruptcy • Time at current address: 9 months • Previous address: 11 years • Time of job: 14 years • Profession: School Teacher • Salary: $58,000 annually ($4833 monthly)

A Credit Union Case Study for a $25,000 Auto Loan

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• Rent: $600 per month -No other debts than rent • Credit card debt before bankruptcy: $48,000 • Unsecured ratio: 0% • Debt to income ratio: 24% • 18 inquiries • 14 total trade lines • No new credit in the last 12 months • 2 new trade lines in last 24 months • Purchasing 2010 Ford Taurus: $30,000 • Down payment: $2000 • Trade-in: $3,000 • Amount to finance: $25,000 for 72 months • Loan to value: 83% • 1st & 2nd mortgages on previous home: $325,000

-Value of previous home: $250,000 -Home was a short sale

A Credit Union Case Study…Continued

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SAM

PLE

SC

OR

E C

AR

D

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• Investment yield 1.25%

• Income from investments using the same loan amount = $962.23

• Income Lost = $14,584.65

Loan Summary Type of account New Car Loan Number of Payments 72 Payment Frequency Monthly APR 17.5% Loan Amount $25,000 Payment Amount $563.15 Total Payments $40,546.88 Total Interest $15,546.88

Low Traditional Scores Can Be Far Better Qualified Than You Think. Turn Your Denials Into Income! Examiners Want to See Earnings!

Lost Income Turning Down a Member With Excellent Qualifications

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• Correctly utilizing a High Yield Lending Strategy will enable loan yield to increase!

• We recommend that you should be approving 80-90% of all loan applications, especially to those members who have found ways to pay you in the past. These loans will often have lower credit scores, which are your most lucrative borrowers.

• You will help a greater percentage of your members!

• Your average yield should be and can be between 8-10%!

High Yield Lending Strategy

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1. The member must have a steady job with a company that is known to us or one of our primary SEG groups. (Be careful of members working in trades where they are paid by cash or members who tend to change jobs.)

2. The job is likely to continue. Ask the member if they like their job and how they have been reviewed at the job. NOTE: Long term jobs and great job stability are a big plus factor.

3. Direct deposit or payroll deduction is a must if there is any evidence the member struggles to pay similar type loans on time. You would like to have this in place for a minimum of 3 months.

4. The member gets high marks if they have paid similar type loans.

Approving Higher Risk Loans

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5. Bankruptcy Threat: If the member has 35% or greater of their annual income in unsecured debt, then only loan low book if you approve the loan. If they have little or no unsecured debt, loan high book provided the first three factors are in place. Unsecured debt includes all credit cards, signature loans, and the amount they are upside down on with their existing or new car loan.

6. On D/E paper, a good guideline for a car loan is 50% of their annual gross income. For example, if the member makes $20,000 you would prefer to only go to $10,000. On A,B,C paper, use 75% of the member’s annual gross income or you would be willing to loan $15,000 on a $20,000 salary.

NOTE: Senior Loan Officers can exceed the above with justification such as:

• Member lives with their parents

• There is a large down payment ---“Skin in the game”

• Car is in great condition, low miles and has held its value

7. Inspect the vehicle if at all possible. Focus on:

• Mileage and Condition of the vehicle

Approving Higher Risk Loans

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Credit Unions that are experiencing some challenges today are: …offering Indirect Lending and relying on the dealer to make the all of the above happen. …financing well in excess of 75% or more of the member’s annual gross income for auto loans. …failing to get direct deposit/payroll deduction. You need to have a verification of this in place, not just a promise.

Helpful Hint

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“Doing the same thing the same way and expecting a different outcome.”

Are You Happy With Your:

• ROA?

• Loan to Share Ratio?

• Loan Yield?

• Annual Loan Growth?

‘Definition of Insanity’

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We have some great success stories with a

HYLS strategy, but none more touching than that

of Ken, a longtime member who we‟d recently

turned down for a loan. Ken has been working at

his current job for over ten years and has, for a

long time, had part of his paycheck direct

deposited with us each pay period. Some time

ago he married his longtime fiancé and for the

last two and a half years he has helped her fight

terminal cancer that finally claimed her life in

February of this year. During her long illness

Ken not only paid his own bills but her bills as

well since she was unable to work for almost

three years. By his own admission there were

times when he “borrowed from Peter to pay

Paul,” but Ken took his (and her) responsibilities

seriously, including caring for her 14-year-old son

that now lives with him instead of the boy‟s real

father. Ken had a $7,000 personal loan with us

and had applied for an additional $20,000

unsecured to help him consolidate some debts

following his wife‟s death, but with a credit score

of 621 and both high unsecured debt and a high

debt to asset ratio, we denied his request.

Fortunately, that was right before our training

with Ed Swanson!

During the training, we pulled Ken‟s loan in a group of recent

denials. Ken‟s positive factors were his excellent payment history,

longtime membership, longtime job tenure, direct deposit, and

number of years at the same address. His adjusted score using the

HYLS was 701! Looking at the loan with new eyes, we were able to

build Ken‟s loan the right way, securing it with available collateral

and spelling everything out in a Letter of Understanding. The loan

we approved for Ken saved him over $360 per month and enabled

him to begin putting $100 per month in a high interest “Wealth

Builder” savings account, which is an important part of our

philosophy of strengthening the member‟s financial situation. He

opened a checking account with us and moved his entire direct

deposit to the Credit Union.

We are glad we were able to do the right thing for a faithful member

who has proven his commitment to repaying any and all debts.

Overwhelmed with gratitude Ken made a special effort to personally

thank our CEO and promised that he will pay back his loan with us

exactly as agreed. As our Loan Officer said, we made a real

difference in the life of a very loyal member, and making a

difference is what our credit union’s philosophy is all about.

Debbie Pidek, SVP of Marketing/Communications

Gulf Coast Community Federal Credit Union

A High Yield Lending Strategy Success Story

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Now is the Time to Start Building Your Loan Yield!

“You can’t build a reputation on what

you’re going to do.” Henry Ford

“Just Do It!” Nike

Ed Swanson eswanson@rexcuadvice.com

And finally, remember this reality that we face every day…

If we do not look to serve all of our members and our potential members, somebody else will!

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hand corner on the homepage

• Click „New User‟ & continue

• Enter your credit union‟s Charter

Number (Contact the HYLS team if

you do not know your charter

number)

• Fill in the contact info and agree to

the „Terms of Use‟

Thank you for allowing me honor to present to you today!

If you would like to continue this discussion,

I can be reached at: eswanson@rexcuadvice.com