Let's try a personal question for you as a member. Simple, easy one. If you qualified for an "A-paper" loan rate at SECU, which was the best rate in the market - so you were getting the best "loan deal" possible; would you object to any other members receiving the same rate?
You've got the best loan rate possible for you! Any harm to you in your fellow members also receiving that same great rate? Their great rate will not affect your great rate in any way.
If you receive the best "A-paper loan rate" in the market, why would you object to other members also succeeding at no cost to you?
Look forward to your comments! No "yes-butts", please!
... What happened to the "Golden Rule"?
SECU was not offering a competitive rate for all before. That is why many members with great credit decided to get their loans elsewhere. The percentage of members utilizing our lending services dropped dramatically because there is more competition and it is much easier to search and compare rates online now. We were not offering an A rate or even a B rate under Mike Lord. We were overcharging many members with good credit so that we could do a once size rate for everyone to factor in risk. Now we offer a competitive rate for everyone.
ReplyDeleteMay be some truth in all that which we'll explore further, butt you fail to answer the question.
DeleteGoing forward, if you personally received the "best rate deal" at SECU would you object to other members receiving the same rate? Not too hard to answer "yes" or "no" is it?
I disagree with the comment from 9:31. Most of our rates were competitive. Yes, there are always some better rates but most of our members prefer to lend through SECU even if the rates is a little higher. I myself have a 800 beacon and was not able to get more then 0.25 % less.
DeleteIn February 2022 I was able to get an unsecured personal loan for 4.99% that same rate at SECU would have been 10.75%.
DeleteNo ... and since it's the members money that we are lending, and the members never cared about it before, what changed? Who became King/Queen of our money?
ReplyDeleteAnd were they elected or did 'they' and the court jesters just decide they should rule?
Ephesians 4:29
ReplyDeleteKnow some folks don't think that religion should be a part of these discussions. I agree with that, but all religions seem to try and help us understand how we should treat each other....and to help us rise above the weaknesses within our own human nature - to rise above, to be something more, to be something better.
DeleteWorldly thinking is what got us here ...
DeleteGreed and the lust for money from those who have no empathy for those who need a hand up (not to be mistaken for a hand out).
The current leadership has not been good stewards of the members/owners money.
You are free to choose how you live ... but just like elections, choices have consequences (believe it or not).
Do we chose to treat members as clients or members, because "There is a Difference"!
This isn’t First Baptist SECU. Many of our members don’t subscribe to the same faiths as our employees.
DeleteStory time: Years ago, I helped a Middle Eastern lady who immigrated to the US years before and became a citizen, yet still dressed traditionally. She said she started coming to our branch instead of the one closer to her home because of the overwhelming amount of religious stuff in the offices and on the teller line—not just a few knick knacks in offices, but enough to where it made her uncomfortable—borderline proselytizing. I knew exactly which branch she was referring to without her saying. I’m religious myself, but not when it’s at the expense of others or preventing them from using our services. Credit unions are for all.
Agree with that...your personal faith should be good enough for you. Others sins won't get you into heaven will they....is that basically what the question is about?
DeleteMr. Blaine, I couldn't have summed this up any better. As a member with excellent credit, I have no problem with other members who may happen to have much lower credit scores being able to attain the same rate as me. Many of those members have a low credit score due to situations outside of their control (unexpected illness of themselves or a family member, unexpected loss of a personal business or other means of livelihood, unexpected major car or home repair). The list goes on and on. Wouldn't it be extremely selfish of me to want those members to be penalized because of these struggles?? The answer is a resounding YES. Their ability to attain the same great rate as me has absolutely no impact on me. My excellent credit is due to many factors within my control such as not financing more than I can afford, paying my bills on time, etc. However, there are things outside of my control that could quickly put me in the exact same position of those members who are struggling. They're already having trouble making ends meet, and SECU is going to punish them by making them pay a higher rate?? That makes absolutely no sense at all. Since when did we become a profit organization instead of a not-for-profit collectively owned cooperative?? SInce when did we stop passing our savings along to our members instead of lining the pockets of the board, CEO, CITO, etc.? Not to mention the millions of dollars of frivilous spending by the CITO to make us more and more like a bank. A bank we are not. Unfortunately, turning our fine institution into a bank seems to be the utlimate goal of this board, Ms. Brady and Mr. Bomba. There are no positive outcomes to our membership from the greediness, self-centeredness and careless abandon exemplified by those who are currently at the helm of our credit union.
ReplyDeleteBest answer and explanation...
DeletePlaying devil advocate.
ReplyDeleteWith “E Paper” having a annualized loss ratio of over 25% from 9/22-9/23 on CEVRs is it fair to depositors who are lending out their money to do so at a 10.75% rate.
Should the depositors continue to take “losses” on those members or should lending to them be restricted in any way?
As with a prior comment, would ask the "devil's advocate" to first answer the question asked: "Yes" or "No". How do you answer?
DeleteWe will be exploring losses etc...that's a good topic! But if you really are unable to answer the fundamental question without a "yes, butt", then perhaps ... well, what do you say "Yes" or "No" ? Be brave...
Just so you'll know, I have deleted several "yes butts" on all sides of this simple question. Some folks want to avoid answering the question.
DeletePerhaps they're afraid of what their answer says about them personally? Is there any danger in admitting that if you're treaty fairly, you support other people being treated fairly?
Sorry hit publish before going back and adding my answer to the question! Had to wait for it to get approved to add my answer.
DeleteNo if I’m getting the best rate out there I have no problem with others getting the same. As a borrower why would I care I can’t go elsewhere to get any better.
And just to add. I don’t think it’s fair to look at that number solely based on the fact that centralized collections has been horrible and the lack of lending/approval training across the board. But I think it’s an important topic to cover.
Some of us don't work at SECU or a bank. Just a member. What is CEVR so I can clearly understand the comment?
DeleteShould members be on the hook to give an unqualified CEO's place of work 6.5 million just to hire him when we had qualified candidates already employed at SECU?
DeleteMaybe that should come out of the boards pockets!
It stands for closed end variable rate. It’s a basic Signature secured personal loan used for any sort of request.
DeleteWere these members talking to a local loan officer? someone who worked for the branch manager, not for centralized loans? did that same loan officer have to call the member when the member stopped paying on the loan? just how did these things work after the board centralized everything and radically changed the structure and policies at SECU? something has clearly made things go south in many areas? It wasn't an accident, and it didn't happen because of the monetary policy in the bigger world. SECU has weathered much worse world wide financial times and always grew.If growth is so important to this board, why doesn't this board follow a model that clearly works. How much time is enough time to for the board to see that SECU is not competitive now and will not be as long as the current practices remain in place? Just long any financial institution on any street corner in NC-- catering to elite and not interested in people of modest means. SECU can own NC if it returns to people of modest means. There are a whole lot more of us than wealthy elites!
DeleteYes I would object
ReplyDeleteBless your heart! Why?
DeleteI thought you just wanted a yes or no answer? 🙂
DeleteGuilty...sorry, we'll move on tomorrow! But think eveyone understands the simple question.....and if honest with themselves can just answer "yes" or "no", based on their personal view.
DeleteAs a 40 year member my answer is No, I would not object to all having access to the best rate.
ReplyDeleteNo, as long as doing so did not result in a decrease in my deposit rate or a decrease in the quantity or quality of services, and did not prevent technological innovation, and allowed the institution to operate in a safe and sound manner.
ReplyDeleteNo I would not object. I worked over 30 years at SECU and had 3 different mortgages, a refinance and multiple auto loans and never used SECU because i always able to find better rates elsewhere. I hated doing it but the difference was two much. I always felt SECU loan rates were too high
ReplyDeleteNO.. never have! Even though at this point I my life I would qualify for A paper rate to be honest it is also the time that I need it the least! There was a time as a SECU member where I absolutely had to have the lower rate to qualify for the mortgage on my first home. Had it been a higher Maybe C paper rate I as a single parent would probably not have qualified! I believe in equal rates!
ReplyDeleteThis is a no-brainer...we've been giving the same loan rate to all members for years and the CU flourished....of course I have no problem giving everyone the same rate... I mean really, how many of us started our adult life with A paper! Those just starting out or in a financial bind deserve the same rate...
ReplyDeleteYes
ReplyDeleteNo. Prudent underwriting and equally sound collections practices by well-informed, experienced, trained and dedicated staff should be capable of mitigating the risk of providing equal rates to every member. Per Mr. Blaine’s instruction, you cannot answer the question based on the recent failures which have created no, but responses. The answer isn’t to charge others unequal rates, it is to address the underwriting failures coupled with collection nightmares from which the organization currently suffers.
ReplyDeleteNo. SECU has used it's secret sauce to treat people fairly and to also be successful. No new recipe for Coca-Cola is needed either.
ReplyDelete"What happened to the "Golden Rule"?"
ReplyDeleteOh it's in play more than ever, those with the Gold, Rule!!!
(don't think that's what you meant though) ;)
Employee/member since 1980 - I appreciated the fact that no one, not even employees, got a better rate than any other member. After all, SECU is not-for-profit and member-owned. No, I do not object to it. My credit/FICO score is over 800 (at the moment), but that has certainly not always been the case. Thankfully, when times were not easy for me, SECU did not add to my burden by charging me a higher rate.
ReplyDeleteYes.
ReplyDeleteI do not have a problem with everyone getting the same rate. In the past, that was a huge "bragging point" when I talked about working for SECU. Treating people fairly made me proud! This RBL mess is ridiculous and hurts the people we're supposed to be helping.
ReplyDelete