Smaller sales staff paves the way

Y-12 FCU increased its loan volume by more than 25% over a two-year period thanks to streamlining its lending operations, introducing new products and not being afraid to prudently take on more risk.

One of the biggest changes was significantly reducing the number of staff selling the credit union’s home equity line of credit from 64 to just two.

That move alone has helped home equity lending to skyrocket at the $1.1-billion Y-12 FCU, which received a CUNA Mutual Group Excellence in Lending Award this past year for its efforts.

“We redesigned our home equity lending product,” explained Stephanie Zuleger, chief lending officer. “We came up with a whole new product.”

The big change was allowing borrowers to lock in and take a fixed-rate, fixed-term loan inside the line of credit. It’s a move that reflects a growing trend in the home equity space, and one which analysts have stated will be a key to home equity lending’s success in the coming years.

 

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