... Who's zooming who?
One of the many fictions put forth about race-based lending by the SECU "executive leadership team" (the "ELT") was that the new, discriminatory RBL lending practices would attract "A-tier" SECU member-borrowers back in droves - especially in the auto lending arena.
Penalizing the majority of SECU member-borrowers with RBL was somehow justified by the surge in loans which the ELT promised would result.
The SECU Board bought into the bogus logic and "manufactured" analyses it was presented in 2023. So, let's check out the actual results in SECU vehicle lending performance after the completion of the first full year (2024):
(from SECU) Dec., 2024 Dec., 2023 12 mo. Change
New Vehicle Loans $1,137,000,000 $1,103,000,000 + $34,000,000
Used Vehicle Loans $2,912,660,000 $2,954,715,000 - ($42,055,000)
😎 Not to be picky nor precise, but if you net "the growth" in new and used car loans (+$34 mil. + - $42 mil. = -$8 mil.), the "promised results" don't seem to add up.
Certain the ELT has an excuse explanation for this apparent misjudgment... can't wait to hear it!
...maybe those excessive charge-offs are lowering the total too much?
One "explanation" so far offered was higher interest rates (thought the CU had the lowest around?)
ReplyDeleteHere's the truth: Reuters - [1/25]: Headline - "US new car sales rose to five-year high in 2024, helped by hybrids..."
Wonder what "explanation" the SECU is hearing...
...and this: [Jan/2025]: "Used Car Sales Jump 4.3% In 2024..."
ReplyDeleteFor SECU Board, trust but verify mode?
It's a mystery what information the Board is getting about car loans? They did go from 5 to 3 tiers. Maybe they will go from 3 to 1? Members can always hope....although that's not good policy!
ReplyDelete"manufactured analyses" ? You're accusing ELT of deliberately putting together and showing the board knowingly false data. That is clear grounds for termination of employment.
ReplyDelete9:54 pm At this point in life, don't believe you can terminate my employment; but in any event, will respect your decision. Will my health insurance be immediately terminated... or does that come later this year?
DeleteBTW, would note there is a difference in being "false" and just being "dead wrong" about "the surge".
But, in either case, it's the members who are paying the high costs for the error in judgment - whether intentional or incompetent.
Haha. The Board is taking the year to work on how best to screw over all the retirees with rule of 85. Wanna be sure they get get it right!
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