This could get interesting...
.... on "Independence Day"!
While trying to analyze whether or not commercial lending is viable for SECU [1/27/2025 post] - and if so what are the limits and parameters the SECU Board is considering; LGFCU/CIVIC FCU was brought forward as a potential reference point for measuring success in such a program [1/28/2024 post]. A heated debate continues in the posts' comments!
In comparing SECU and LGFCU data, took a look at the official NCUA risk-based lending rates for both institutions at 9/30/2024. One of SECU's continuing claims is RBL was necessary to provide A-tier members best-in-market, competitive rates, especially in auto lending.
😎 It would appear that an SECU member doesn't need to look too far to find a better rate on a new car... and a used car... and a credit card.. and a first lien mortgage at LGFCU.
And, remember everybody can join LGFCU/CIVIC! (Uh-oh...!)
Just to emphasize that SECU might want to invest our time, energy and resources toward improving rates and quality of service to existing SECU members before wandering off into the more complex world of commercial finance.
ReplyDeleteThe clear message in LGFCU rates is that the SECU Board and ELT are not "________" (fill in the blank)!
SECU new car, excellent credit, 60 month term rate = 5.50%. Civic CU, 60 month. new car, "rates as low as 6.50%" is 100 basis points lower enough for you?
ReplyDeleteI’m not sure what this report is supposed to be showing, but a quick glance at both institution’s websites show SECU’s score ranges for all products are lower than LGFCU’s.
ReplyDeleteAny data newer than 4 months ago?
ReplyDeleteNew Call Report data comes out 2/1/2024. See comments that indicate that SECU has lower rates now in new cars at least...
DeleteChecked credit card rates and LGFCU seems to have lower rate at 11.25% vs 12.00% for the A-tier folks (check for yourself!)
DeleteAppears that SECU hs more favorable A-tier rate on HELOC while LGFCU is attempting to post lowrer rates on the personal loans and signature lines of credit.
DeleteBoth credit unions are opaque in posting rates for all tiers... purposefully makes comparison by members difficult... but that's "industry standard"!
Several commenters have correctly warned about comparing rates from the end of 2023 . We'll take a look at 12/31/2024 reports next week.
How are score ranges opaque? You would know the best case and worst case scenario for your rate. Just like other underwriting criteria used to set rates (think loan to value when you don’t have an appraisal value yet), consumers should be planning for the worst (rate) and hoping for the best (rate).
Delete"Both credit unions are opaque in posting rates for all tiers... purposefully makes comparison by members difficult... but that's "industry standard"!"
DeleteThis right here is exactly what frustrates me to no end ... quit playing games and just tell me what it is!!!
3:48pm Don't buy the BS. SECU knows the rates why not tell the members? Is the SECU Board afraid we the owners will know - why?
DeleteYou only have 3 tiers, right? And publish 2.... do you understand how silly SECU looks by "withholding" the rate on the middle tier? (You're not fiddling with it somehow on the sly are you?)
Another missed opportunity for the Board to be fully transparent - why is the ELT advising them differently?
ELT is making the Board look like scoundrels or dullards unnecessarily - and inaccurately!
@6:48... don't necessarily disagree, but why do you assume ELT is advising the Board this way. Board made the call / vote to approve doing RBL, but how it is operationalized is a management issue. How rates are presented on the site is a tactical thing. Understand the general notion that the buck ultimately stops with the Board, but this is or should be ELT decision, not a Board decision, on how the operational aspects of this work. So if you think this is bad, ELT making themselves look bad, not the Board.
DeleteELT & Board = 'two wings of the same vulture'
DeleteSECU’s lowest New Car rate is 5%, Civic is 6.5%. Also do not understand how Local has listed a lower used car rate than new car rate on the table.
ReplyDeleteSECU looks to have better rates at the lowest tier in autos and home equity loans.
DeleteLooks like LGFCU incorrectly filed the report with the most common interest rates on their entire book rather than on the loans originated in the reporting quarter. LGFCU was not offering 3.25% first lien mortgages in 2024Q3
ReplyDeleteHave no idea, but would imagine that regulators do not worry too much about nor double check the reported rates.
DeleteThe loan comparison is enlightening…..can we see what the two CU’s were paying on like savings instruments for the exact same time period report? I would expect to SECU to be returning more to members since rates were higher.
ReplyDeleteThink commenters made good point that if you want to compare you should do it at this point in time. Easy to pull up the websites... the savings rates are not opaque. Save readers some time and report back...
DeleteWe may be at a point where the tax exemption goes away. Many Credit unions have diverted away from their core goal and have operations similar to their bank counter parts. Its a matter of time
ReplyDelete