... Brain Surgery?
Ever wondered why you've never met a brain surgeon working at the Credit Union?
That's right; because lending money isn't quite that difficult. Pretty basic really, just common sense. But there is an art to lending, much like surgery. Great doctors correctly judge your health, great lenders correctly judge your character. Both require a sound diagnosis and a vow to do no harm.
The new lending regime at SECU - featuring race-based lending (RBL) - appears to be faltering on all fronts . Again, the financial facts tell you that loan losses have skyrocketed - up by $125 million annually since 2021 - with delinquent loans - an indicator of future losses - three times higher than 2021.
What's the problem? According to the "Executive Leadershp Team" [see post], it is the SECU Board, which is approving all these new policies and missteps.
Perhaps, but far more likely is that the "Executive Leadership Team" - as recent history so sorely demonstrates - can't admit to a mistake. Or worse, the "ELT" won't fix the problems because the SECU Board has failed in its fiduciary duty to hold them accountable. The growing lending snafu - costing you as an SECU member over $100 million+++ per year - is not a minor fiduciary matter.
But lets get back to looking at the nature of some of the lending problems that the SECU Board has created (according to the "ELT") . Here are a couple of questions for you to consider for tomorrow's class on Lending 101:
- If a loan defaults at SECU and a loss occurs, who made "the bad loan" - the member or SECU?
- Who is responsible for the bad loan decision?
- Given the high loan losses and exploding delinquency, why is SECU making more bad loans than in the past?
- The 5-tier RBL system is being replaced by the ELT, after less than a year by a 3-tier RBL system. Why did the 5-tier system fail?
... look forward to your answers - and"their" excuses?
A good read today on Chip Filson’s blog, “Just a Member”. Are credit unions losing their soul and becoming an Industry (industry standard anyone?) instead of a movement? Have they become more concerned with growth and touting achievements than helping their economically disadvantaged members. Sounds familiar huh?
ReplyDeleteYes, Yes and Yes ...
Deletehttps://chipfilson.com/2024/04/climbing-ladders-to-nowhere/
ReplyDeleteall they want to do is look for someone to blame for their failure as leaders ... the board, algorithms ... the MEMBERS!!!
ReplyDelete'They' are starting to sound like a two year old ...
"The ELT" = "The ELITE"! nailed it! A figment of their ain't me delusions.
ReplyDelete"... great lenders correctly judge your character."
ReplyDeletethat requires a bit of wisdom ... in short supply at the top of the food chain ... those on the front line will have to carry the executives (their too busy having lunch catered in to worry about this lending nonsense) ...
they cater while the rest of us and members crater.
DeleteLet's just get a dart board and throw darts at possible solutions ... we can all meet at Duck, NC instead of having the food catered in ...
Deleteps (don't forget your money gun)!
The money gun wasn't even the execs...
DeleteThese leaders still have the playbook that made SECU successful ... will they blow the dust off and re-read it?
ReplyDeleteas a wise man once said "it's just common sense"!
Over the past three years with changes in key leadership positions, SECU went from acting small and thinking big to thinking small and acting big!
ReplyDeleteAdd to that the reported unprecedented waste and losses under poor and weak leadership by the SECU Board and Executives. This member is Very concerned about the true state of my credit union. What happened to what once was the best credit union in the country?
Add to the fact that bombastica and his cronies came in and started replacing everything with their old workplace systems, the only ones they are familiar with and spending all the millions and taking in kickbacks like private jet travel, etc. Losses are mounting. Brady is pretending to be a non-legacy to gel with them and playing the same shameful legacy card to get around...
DeleteI'll just add that the board didn't change at that point ... 'they' were just lurking... waiting for JB and ML to retire then they could roll in their trogym horse ... and they had help on the inside with LB for their takeover ... it's painful when your own betray you ...
Delete@2.30 true. NICE phone system, Adobe for new web site and the list goes on. Members money down the drain.
DeleteStill cannot order business cards! Oh yeah waiting on that career path! Here’s a brilliant idea, just put member services for the title on the business card. I know it’s rocket science……
ReplyDeleteSo many questions the board doesn’t know how to answer at this point. They have put the members and employees on hold in exchange for financial wealth and power
ReplyDeleteI am so disappointed in “my Credit Union”! I don’t understand why if they can’t “do the right thing” that SECU has done for 80+ years, then at the very minimum LOOK AT THE NUMBERS!
ReplyDeleteDo they understand how to read a financial report? Their actions sure make their abilities suspect
DeleteThe 5-tier RBL system is being replaced by the ELT, after less than a year by a 3-tier RBL system— if the 5-tier RBL system didn’t work why do they thinK the 3-tier RBL system will work?
ReplyDeleteWhat comes after a 3-tier RBL system?
Deletethey know it won't work, it's just buying them time for HB410 ...
DeleteWhy do they want HB 410? To open membership to all?
Delete