Jeremy Alicandri, Managing Director of MK&A, explains to CU Journal that “many banks are reducing their risk appetite in auto lending, and therefore pulling back on non-prime lending,” meaning within certain credit tiers, CUs may have an opportunity for growth. Moreover, Jeremy explains, “credit unions are already ‘careful lenders.’ And because common bond memberships often center around employers, credit union members typically have steady employment. The credit union, by its nature, has real information about the member’s ﬁnancial status since they often obtain credit card and mortgage statements that demonstrate a history of payments rather than solely examining a credit report. Thus, [even] if a bank turns down a borrower, a credit union may be able to approve the borrower while staying within the credit union’s underwriting standards.”
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*Photo Credit: CU Journal.