✅✅ Recap: In this series, have tried to demonstrate that: 1) SECU has been highly successful for the last 85 years - without RBL, 2) SECU has been financially successful - last 5 years "most profitable ever" per CEO Brady - without RBL,
3) SECU members - per SECU Loan Administration estimates - will pay
literally hundreds of millions of dollars in excess interest on loans - with RBL, 4) the same rate, "A-paper for all" lending approach is a superior "marketing" strategy - without RBL, and 5) there are no financial, nor operational reasons for the SECU Board not to pause future RBL implementation to re-discuss its decision with the SECU membership.
✅ The SECU Board has evidently been led to believe that SECU doesn't serve "A" paper borrowers. Why? According to SECU Loan Administration, because the rates charged by SECU over the years have not been competitive. That is simply not true - except perhaps over the last 2 or 3 years!
How do you know? Here is the breakdown of actual SECU borrowers toward the end of last year by credit tier (the SECU Board received this information):
... Y'know when you look at RBL more closely, it never seems to "add up"!?
Where do these numbers come from? Are members able to request this data?
ReplyDeleteSECU Loan Aministration has all the numbers. The credit scores come from the credit bureaus, Equifax is the primary source.
ReplyDeleteNo reason not to make the information available to members - there is no personal, confidential information on any member included.. Would increase the credibility of the Board.
Deleteit's like pulling teeth to get information ... UGH!!!
DeleteDo other credit unions release information like this?
DeleteDon't know what the "industry standard" is.
Deletethe two of us have been retired for a bit. Mortgage paid off years ago so home equity is north of half a mill. We have never had a car pmt. We have nothing but a credit card as far as credit (along with utilities) that is paid off monthly.We've never been late on a pmt of any kind yet I'm told we would not qualify for "A" paper because we don't have enough debt. We would seem to be perfect borrowers but it would seem secu would think otherwise.
ReplyDeletethat's an example of the credit score flaw...
DeleteOr take the example of the member wanting a car loan with one collection on their credit report to their previous auto insurance company from when they changed carriers. No other credit blemishes and yet their score is a whopping 611. Well away from any “A” paper I’ve ever heard of…
DeleteIf you put $2k in a money market at State Dept Federal, they'll pay you 1.21%
ReplyDeletehttps://www.andrewsfcu.org/Bank/Savings/Money-Market
At Andrews Federal they'll pay you 3.2%
https://www.andrewsfcu.org/Bank/Savings/Money-Market
SECU...losing to industry standard by a .1%
Not sure those places set the standard we want to follow…
Delete