ONTARIO, Calif.–Some CUToday.info readers reported problems linking to an announcement related to a new 10,000-square-foot Innovation Lab completely focused on lending that CU Direct is preparing to unveil.
The correct link for additional details on that story can be found here.
Meanwhile, the company is reporting that in 2016, for the first time, credit unions loaned more dollars for auto purchases than did the captive finance companies. That’s the good news. The more challenging news is that while volume in 2017 is projected to be equally robust, CU Direct is preparing credit unions for an increase in loans that hit a dead end.
“We know it’s cyclical, and we expect to see some upticks in delinquencies,” said Tony Boutelle, CEO of CU Direct, adding that with those delinquencies there will also be a similar uptick in repossessions. In a new white paper, CU Direct said the number of auto loans seriously delinquent rose from 2.9 million in the third quarter of 2014 to 3.7 million in the third quarter of 2016.
For that reason CU Direct has been working to improve remarketing at credit unions, which is the focus of that new white paper, titled “Effective Asset Disposition.” The paper examines all aspects of auto remarketing, and includes case studies on two credit unions, one of which increased its average dollars earned per vehicle to $780, while the other increased its return by $500.
The paper also reviews how to choose an auction and why it matters and the five benchmarks of an effective disposition program.
For more info: www.cudirect.com