CUNA Mutual Tackles Open-End, Closed-End Lending

From CUNA Mutual Group Public Relations

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Maripat Blankenheim 608.232.6539
Phil Tschudy 608.231.7188

AUSTIN, Texas – Determining the appropriate lending strategy requires credit union leaders to ask themselves the right questions based on their members’ needs and the continually advancing technology. Evaluating the considerations and presenting the options were just part of what CUNA Mutual’s Robert Israelite and Mark Nelson shared with members of the Texas Credit Union League today at their 77th annual meeting and expo.

Israelite, a sales specialist with CUNA Mutual, told the workshop audience to consider open-end and closed-end lending when developing their approach to lending. While both are legitimate lending options, they have different disclosures and documents to be considered, he said.

“What you want your members’ lending experience to be will be one of the strategic questions to consider when deciding your lending approach,” Israelite said, adding there’s not a one-size-fits-all approach that will be the right fit for all credit unions.

While closed-end lending takes a traditional approach to lending, open-end lending enables the process to be conducted remotely. The convenience and simplification can be a differentiator for members, said Nelson, also a sales specialist with CUNA Mutual.

Nelson added that progress in technology – internet lending, electronic signatures and mobile lending – add to the exciting opportunities available to credit union lending programs.

“The advancements in mobile lending and electronic signatures will change the way your members borrow,” Nelson told the audience. “Your credit union needs to be ready.”

Because the lending landscape continues to change due to regulatory and technology influences, Israelite and Nelson recommended credit unions answer the following when planning a lending approach:

  • What do you want your members’ lending experience to be?
  • What products do you offer?
  • How do your members prefer to close loans?
  • What is your credit union’s position on remote lending channels?
  • Where do you lend? Different states have different regulations.
  • How comfortable are you with regulatory ambiguity?
  • Does your state allow electronic filing of titles?
  • How strong and competent is your compliance support?

Nelson suggested credit unions engage their compliance and operational partners – data processor, document provider, legal – as well as answering the thought-provoking questions to determine their consumer lending approach.

CUNA Mutual Group insurance, retirement and investment products provide financial security and protection to credit unions and their members worldwide. With more than 75 years of true market commitment, CUNA Mutual’s vision is unwavering: To be a trusted business partner who delivers service excellence through customer-focused products and market-driven insight. More information on the company is available on the company’s Web site at

CUNA Mutual Group is the marketing name of CUNA Mutual Insurance Society, its affiliates and subsidiaries, including CUMIS Insurance Society, Inc.  Product availability and features may vary by jurisdiction and are subject to actual policy language. Corporate headquarters are located in Madison, Wis.


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