... 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?
