By Cynthia R. Walker, CEO
According to the Census Bureau, in 1940, the median home value adjusted for inflation was $30,600. Now, as the average amount financed for a new auto is very close to $30,000, 84-month loan terms are becoming more common. As we know, people shop for vehicles largely based on the monthly price. Therefore, pressure mounts to increase the terms to keep the monthly payment in an affordable range.
According to the OCC Semi-annual Risk Perspective published in the fall of 2015, banks are easing underwriting standards and terms, particularly in auto lending to remain competitive.
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By Mark H. Smith, Founder
Over my 30+ years working with credit unions, I have often witnessed the trauma that can occur from poorly written or nonexistent policies. When things go well, the lack of a written policy is often overlooked. However, when problems occur, the finger-pointing and blame assignment begin.
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By Matthew Jacobsen
In March of 2016, the NCUA released credit union data for 2015 and noted that median growth rates for loans, assets, and shares were positive in all states. Median loan growth was 4.0% and median shares and deposits growth was 3.6%. The median loan-to-share ratio was 62% which was up slightly from the previous year. Total loan delinquency rates continued to decline. CUNA's January 2016 CU Forecast for loan growth in 2016 is 9.0% with share growth at 6.0%. Their delinquency rate forecast for 2016 is .80% and earnings are forecasted to be .70%.
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Mar./Apr. 2016
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