... speaketh with tongue forked?
✅ One of the original, foundation principles of all credit unions was the concept of a limited-membership, financial cooperative - not serving the general public. The limitation was often phrased as "a group sharing a common bond". The "common bond" was most often focused on an employer, church, union or social group - with spouse and family included.
😎 The definition of "limited membership" has changed significantly over recent years; and has been one of the chief concerns over the future direction of SECU. In 2021, the SECU Board appeared to be going off half-cocked with aspirations of building a regional or national credit union empire at SECU - with member funds, without member support.
Stumbled across an excellent example of how "limited membership" has been effectively eliminated at many credit unions. The credit union is called Unify [link] which started out in 1958 as the credit union for Western Airlines employees. As you'll note from the "Do Good, Get Good" membership category, might just as easily call Unify the "Friends of Hobbs Credit Union"...
✅ Unify is no longer the exception among credit unions in terms of open membership eligibility. The question for SECU members: " Is this the model you hope your credit union will become?" Should you have a voice in that discussion, in that decision?
😎 You don't currently.
. .. is Calvin [& Hobbs] eligible as a family member?
Unity does not have open membership. You literally listed their membership requirements. Wide =\= open. Sorry to disappoint
ReplyDeleteLooks pretty open to me. If nothing else works, I can become a "Friend of Hobbs"... and the CU will pay any joining/membership fee for me.
DeleteWho exactly does that leave out...?
Look forward to your response.
Bad news. Apparently my dog is unable to join since they do not have a social security number. All dogs go to heaven but they cannot join Unify. They are man’s best friend but I guess they are not a friend of Hobbs.
ReplyDeleteand oversight is allowing this so at some point in time they (CU) will be made to pay taxes.... and someone will make out like a bandit!
ReplyDeleteThis unfortunately is the trend in the CU industry. There are consulting firms that make a lot of money helping CU's convert to open membership.
ReplyDeleteIt's wrong and goes against the purpose and founding principal behind Credit Unions. How can you best serve "members" that you don't know, don't truly understand their needs and the communities they live in. As a CPA in practice, a lot of the large Credit Unions that do this originate loans from FINTECHS, and then package these loans as participation pools and sell them. It's an ROA play.
SECU is planning to sell their mortgages on the secondary market if they are not doing it already.
Delete@2:30.. so is that a bad thing?
DeleteSupposedly selling on the secondary market is coming this year
DeleteWould love to hear the pros/cons from selling on the secondary market if SECU retains all servicing. Is Freddie bad?
DeleteIn our traditional model, we've done mostly ARM loans and held them. ARM loans protect the CU in total from interest rate risk. However, it places the interest rate risk on individual borrowers. Now, we have a very serious mortgage delinquency problem because we gave them ARM loans and put them at risk to sharply rising rates. One reason we didn't sell is wanted to originate higher risk loans and have full control in default. The delinquency, and the members suffering with it, was a direct result of the business model, which was a choice - not a result of a recession or high unemployment. Unfortunate.
DeleteIf we sold loans, we could instead have fixed loans be the majority of the originations, and both individual members and the mortgage portfolio would be largely protected from interest rate risk, and the payment shocks of higher rates.
For me, expanding credit union membership has more negative than positive affects. If people want all that, they should have bank accounts. Don't mess with the mission/community service of a credit union.
ReplyDelete3/4 8:45pm - Only been 5 months since annual meeting when all was well.....now she is talking about layoffs and benefit reductions? I don't remember layoffs and benefit reductions happening under the former leadership. I know, former leadership and retirees have been annoyingly vocal about (unwanted) changes. But, maybe turning a deaf ear to opinions and concerns of long-time employees (in any company) is not wise. Maybe it is time to rethink the number of new executives and changes made to an already great organization. Just my opinion - Charity
Why is the Credit Union doing so bad? What happened during the Hayes years? What is happening now? Talks of taking away PTO, 401k match,, no more overtime? Where can we charge more fess? What is going on? Who is responsible for the poor choices? Talk about cutting costs how about not mail ballots out to members like they did, or having lavish meetings at the Washington Duke, or flying on select employees to lavish galas and meeting in places like Vegas. How about stop promoting favorites to another position when they have no new task and no new reports.
ReplyDeleteGot to find some way to pay for all these trips the culture office sends people on
DeleteThey need the two Bobs to go in and look at every position SVP and up….”what exactly is it you do…..”
ReplyDeleteCollectors were given unlimited OT and still couldn’t get the job done. What is the consequence of this?
ReplyDelete