Is Your Credit Union Ready To “Proactively”
Address Today’s New Lending Challenges?
Fellow Credit Union Manager,
the sub-prime fiasco, the Credit Crisis, and a deflationary recession –
our role as “risk manager” just got a lot tougher. And, it promises to
get even tougher as this recession drags on – that is – unless you have
the necessary tools to “proactively” adjust to each change in the
face it – single-rate traditional lending is just too risky in
today’s economic environment. Your "average" single loan rate is either to
high to attract sufficient low risk borrowers, or, to low to cover
potential losses from high risk borrowers. You settle for the
"average" risk member and then hope for the best. If you’re still using this type of lending –
you will find it increasingly difficult to compete in the lending marketplace.
Risk based, or tiered rate, “pricing” took
lending to the next level, but didn’t go far enough. It did acknowledge
the different risk levels and then attempted to price the
anticipated risk for each level accordingly. It failed, however, to
utilize the wealth of data that exists behind the "graded paper".
Like single-rate lending, you’re forced to respond to a changing
marketplace with “reactive assumptions”. You assume you’ve priced each
risk level appropriately and then hope for the best. There is a better
based “lending” begins where risk based “pricing” ends –
and then takes your entire loan portfolio to a new level. A level
that uses simple risk management tools to better identify, monitor,
and manage each risk component. You
easily identify trends and then price each tier as you “proactively” respond to
economic changes – with greater confidence, clarity, and control.
"Risk Based Lender -- The Credit Union Solution”
is a proven risk based lending solution,
with a 15+ year track
record, and is
used by more than 275 credit unions worldwide.
package, you will quickly learn how to become a proficient and confident
risk based lender:
First, you learn the
basic what, why, and how of risk based lending. From there, you
build the "foundation" of your risk based lending program with easy
Next, you customize the
package according to your own credit union's unique goals and
objectives. The manual contains a variety of underwriting
options. I discuss the pros and cons or each option and then
you choose which to include and which to reject. This is not
a one-size-fits-all package. You remain in complete control of
every aspect of the set-up process and adapt it to your
credit union's lending style -- as you see fit.
Finally, we move beyond
risk based pricing and discover how to use the simple analytical
tools to unlock the wealth of information that exists within your risk
based lending database.
Simple tools that
help you actually visualize your loan portfolio --
as if it were a 3-dimensional sculpture -- complete with
to mold and shape your portfolio as desired.
Tools that help you
become a proactive lender, with the ability to identify
and adjust to changing internal and external variables and/or
Tools that help you
monitor and control default risk, as you significantly boost
profitability and member service.
Act today and take advantage of the
risk-free trial offer
to discover for yourself why this package is the top-selling risk based
lending package in the credit union industry.
Credit union manager for over 34 years, and,
President, Risk Based Lender, LLC
P.S. For over 15 years, I have offered a single or dual risk score
option – with preference towards the dual risk score
as better protection against changing economic conditions.
Fair,Isaac, creators of the FICO score, recently confirmed that belief
when they addressed the current credit crisis and stated:
“the use of multiple scores will have a greater yield in
managing the ongoing downturn in the credit cycle”
8, INSIGHTS: Managing Risk in the Credit Crunch, Number 5, June 2008)
reasons why this risk based lending package
for your credit union:
win because this program helps you:
- Serve a larger segment of your
Now you can break through the barriers of single rate lending and
"Yes" to more loan requests from your members.
- Offer your low-risk members
the rates they deserve:
They've proven their credit worthiness and have earned the best
possible rates. Now you can offer the rates that will bring
their low-risk business back through your credit union's doors.
- Provide faster service to all
Streamlined evaluation procedures and clear-cut guidelines means
faster service for everyone.
- Approve more loans for many (not
your higher-risk members.
"Tiered-rate" lending allows you to approve more of those "borderline
loans" that were previously denied.
wins because they have the ability to:
- Improve member service and
Faster loan processing and more approvals means happier members.
- Increase profitability while
you reduce loan default risk:
More approvals means more income and a better bottom line. Plus, managed
risk means less delinquencies and loan default.
- Insure complete accuracy and
Reduce subjective decision errors
with clear-cut lending guidelines.
- Better monitor loan trends and
loan officer performance:
The simple, but effective tools,
included with this package provide a wealth of information
that increases performance and efficiency.
because you will be able to:
- Reduce staff workload:
as you effectively boost morale, productivity, and job satisfaction.
- Increase loan officer
Your loan officers will process more loans -- in less time -- with
- Reduce Loan Officer Stress:
Clearly defined and established
underwriting parameters reduces the stress associated with
subjective/judgmental decision making.
And, You win
because this "hard-copy" solution includes:
- Step-by-step set-up
The transition is easy with detailed step-by-step set-up
- Multiple set-up options:
You have the ability to customize the program to complement your
credit union's unique goals and objectives.
- Complete staff procedural
training and guidelines:
Staff training is a breeze with the detailed
explanations and guidelines.
- Board of Directors Proposal:
A complete and detailed board proposal on disk (Microsoft Word format) for easy customization.
- Risk Based Lending Policy:
Also included on a floppy disk in Microsoft Word format for easy
- Loan Officer Log:
NCUA Examiners and Supervisory
appreciate this simple yet highly effective tool. It also
serves as the data source for all trend analysis and revalidation
- Unlimited Free Support:
You're never left out on a limb with
an unresolved issue. If you ever have a question or
concern, a solution is only a phone call (or email) away.
- Client's Only Section:
Keep up to date with the latest downloadable revisions and news
about risk based lending.
- 100% 365 day "Risk Free
Take a full 365 days to evaluate the program -- if you are not
completely satisfied - simply return it for a prompt,
hassle-free refund of your purchase price). That's it -- no strings
-- no gimmicks -- no risk -- and no hassles.
type of "solution" is this package? It's...
The Credit Union Solution
This lending system
was developed specifically for credit unions – by a current credit union
CEO\Manager -- with over 32 years experience in credit union lending
and management. Although the program is based on the latest research by
industry experts in credit evaluation, its foundation is firmly built on
the credit union philosophy.
The blended "Dual-Risk Score”
Unlike other risk based
lending programs that focus only on the risk of "delinquency default",
this program uses a "blended" dual-risk score matrix that
measures both delinquency and bankruptcy default risk.
Just as a braid is stronger than a single strand, this matrix was
designed to be stronger (more predictive) than the sum of its individual
scores. To accomplish this, each tier level was tested, adjusted, and
then blended into a cohesive matrix. This "blending" resulted in a risk
assessment matrix that was stronger than the use a single risk score
or the use of two unblended risk scores.
Although I recommend the use of two risk scores, you do have the option
to set-up the program using only one risk score.
The Simple Solution
If you're like most credit union managers, you
wear many “different hats” within the organization -- which means you
need simple, straight forward solutions -- that are effective yet easy to
implement. I’m a firm believer in the “KISS” principle and this
program reflects that belief. Follow the simple step-by-step
guidelines and your transition will be smooth and problem free.
This package has built-in flexibility
that allows you to “mold” the program to meet your own credit
union’s own lending objectives and guidelines. The manual takes you
step-by-step through the setup options and procedures. When different
options are available, I discuss the pros and cons of each – and then
you choose the option that best meets your credit union's goals and
objectives. That means that you stay in complete control of every facet
of this program.
determine your credit union's risk tolerance levels and establish
the appropriate parameters within those levels.
draw your own “line in the sand” to separate acceptable from
unacceptable risk levels (automatic denials).
choose what to do with your current under-writing guidelines and how
or if you wish to incorporate them into this program.
decide when and if you want to modify the underwriting parameters in
order to meet short-term goals, address changing economic
conditions, and/or realign your loan portfolio composition.
This system is
not a software program.
It doesn't need to be. It's a simple, straight-forward, highly
effective lending system that can be fully customized.
It's a journey
that we take together with step-by-step instructions and guidelines.
You will quickly learn how to become a "risk based lender" -- rather than
software user. As the system continues to evolve, there may be add-on software
modules -- but those add-ons will be options -- not a requirement.
If you currently use an automated system, you should be able to
incorporate the lending parameters into that system (depends on the
The Cost Effective
This package sells for a
small fraction of the price of competing single-rate risk based lending
programs. For less than the cost of attending a seminar that tells
you why you should be involved in risk based lending -- you can own the
most complete package on the market -- risk free.
questions about risk based lending and/or this credit union package?
Please Click Here to continue...
Special Low Price
What other credit unions are saying:
"From the first page of your Risk Based Lender
- The Credit Union Solution, I was hooked! Saying that you have
mastered risk based lending would be an understatement. Thank
God you have crammed your endless research into one perfect package
for credit unions..."
Lanier Federal Credit Union
"I think your program is the most comprehensive
and understandable of all of the RBL plans I have come across.
Thanks for a program that keeps it simple."
Altoona Postal Employees Credit Union
"I have to give you an update on your program.
We are 100.1% loaned out, our delinquency ratio is .16%, and we're
making money hand-over-fist. The members love the program
and so do we. Thanks again!"
Joan E. Wagner
Saratoga Springs Federal Credit Union
"Having managed this credit union for 21
years, I was appreciative of your approach to the issues as well as
the clear and concise way that the material and method was
Dor Wic Federal
"After a year of using the matrix, our turn around time is quicker,
all loans use the same criteria, and we're able to lend to members
that may not have gotten loans before. Thank you Dave for all your
Falls Federal Credit Union