The SECU Board believes that SECU doesn't
serve "A" paper borrowers.
Why? Because they haven't been told the whole truth.
According to the SECU CEO and SECU Loan Administration muck-mucks, the Credit Union had to implement race-based lending (RBL), because the rates charged by SECU over the years to "A-tier" borrowers have not been competitive.
✅ That is simply not true.
Here is the breakdown of actual SECU borrowers before RBL by credit tier. The data is from SECU Loan Administration!
✔ Charts Showing The Number of Actual SECU Borrowers By Credit Tier:
Doesn't that look like a fairly well-distributed portfolio of member loans?
✅ 247,000 "A-paper" SECU members chose to borrow at non-competitive rates from SECU? Do you believe that? Why does the SECU Board believe it?
✔ Please also note the total balances owed by each "Tier" group:
1) "A"- paper: Total outstanding loan balances - $8.9 Billion
2) "B"- paper: Total outstanding loan balances - $6.6 Billion
3) "C"- paper: Total outstanding loan balances - $5.7 Billion
4) "D"- paper: Total outstanding loan balances - $2.1 Billion
5) "E"- paper: Total outstanding loan balances - $0.3 Billion✅ SECU "A- paper" member-borrowers owe the most at $8.9 billion and owe more than all the "C, D, E" folks combined!
✅ What was the SECU Board told?
For all SECU members, RBL has been a painful, costly decision - 3-tiers doesn't make that mistake better!
When you look at RBL more closely, it never seems to "add up"!?
You can keep asking why they'd do this, but the reason for introducing RBL is actually super simple: conformity.
ReplyDeleteSECU was the only credit union (or bank, for that matter) that I know of in the entire United States that offered the same rate to all members. To Hayes and his ilk, this is not something to be proud of - it must be a bad thing. They couldn't really tell you why; it just has to be.
It's not about the numbers. It's not about the statistics. It's not about the actual facts. It's far simpler than that. It's just the reptilian part of their brain automatically rejecting the notion that one organization can be right and thousands wrong. It simply doesn't compute for them.
Because they aren't leaders. Not really. They're followers that steal the ideas, concepts and procedures of others and act like it was their own.
Look at the new ncsecu.org website, as a good example of that. It SCREAMS cliche, typical corporate website. You've seen it a thousand times before. Meaningless buzzwords, flashy buttons, but nothing that makes it really stand out. Nothing that really defines SECU as anything different or special. The people that are leading the credit union now haven't had a single original thought pop into their minds in their entire lives. They're just looking to see what everyone else is doing, and using that as their guide.
It would be like someone taking over at Chick-fil-A, seeing how they say 'my pleasure' when no one else does, and immediately abolishing it. Or how they deploy multiple employees outside to take orders. Well McDonalds doesn't do that! KFC doesn't do that! So it must be a bad thing, right? Get those customers talking to the jack-in-the-box like every other fast food chain!
Oops, now our lines are super long, customers feel disenfranchised, and we're losing a ton of money because people are starting to go elsewhere? Shocker...
That's what Hayes did to SECU.
"You can keep asking why they'd do this, but the reason for introducing RBL is actually super simple: conformity."
DeleteWe Can't have a unicorn making us all look bad now can we ... people might just suspect they've been takin for a ride ...
This is true about Hayes but this was in the works behind the scenes before him. Our former CLO was a driving force. Went before our Board and showed his support. Even told Hayes he wanted this on his first day of employment. So there are others to blame as well. precious CLO, :some of the current execs and the Board!
DeleteThe new website also screams First Citizens. Where it was copied from.
DeleteVery well said! It was perfect marketing without a marketing department. We were different because we chose to be, we wanted to be the only one, because it philosophically lined up with who we are—-it IS THE right thing to do!! Used to make us SO proud.
Delete@8:48 You are completely right. It's cos Bombastica, Lee Chalk, et al paid for Adobe product just like FCB. Everything is a copy cat of the previous organizations the C-Suite came from or there were other kickbacks. Just for giggles remember the private jet charter to Atlanta by NCR.....
Delete8:48 .... thanks for sharing that info - it is like First Citizens. So close that it does appear they purchased someone's template. But is it more functional or more helpful than what we had before? Maybe this change was made so that the website team can make changes on storefront without IT programming. / CC
Delete@12:50 - what do the members think? Have they called in with comments about how much the new site has improved their lives? I'm a member. I don't see a whole lot except flash.
DeleteWas it just built to make life easier for the website team?
When everyone is the same, it becomes much easier to control them ... it's all about controlling the masses ... can't have a unicorn out there!
Delete12.50 - It's neither more functional nor helpful. Infact the current website is slower than the old one. There is work involved on the IT side. No magic. Lots of money was spent on this website. The old one was done internally and handled internally. Word is they are looking for additional resources on top of having extra people and maybe even outsource the upcoming development/maintenance. And to think it's just a pathway to login to view the financials. How much time maximum do you think a member is spending on this portal max? 3 minutes? The new website is so blah compared to the money, time and effort poured into it. And more to be spent. No one is willing to admit it openly and keep sending all these (self) 'pat on the back' emails.
Deleteit has to be just true enough to be believable ..... aka deception ....
ReplyDeleteOctober and the annual meeting is sneaking up
ReplyDeleteyou see the board and the c-suites view the cu's money as theirs not the members (not unlike congress).... and we need to make the peasants pay for our luxuries ...
ReplyDeleteso my question is who made them king/queen?
Could we get those charts in todays numbers for comparison
ReplyDeleteKeep doing this. we need this
ReplyDeleteboard out.
its incompetence or corruption, either way keep putting the facts out there. My members are noticing.
bad board and weak leadership formula for disaster. and it is happening as we speak.
The question is how many A tiers have a loan somewhere else. is that in your data? In fact, your data is Exhibit A for the case for RBL. The mix of C-E is basically non-prime or sub-prime and is why losses are so high. We were a lender of last resort to higher risk borrowers by giving them loans at a rate they couldn't get in the market.
ReplyDeleteAnd yet, losses were low. Very low.
DeleteThe losses are so high because of moving collections from the branches which was another bad move from our great leadership.
Delete