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Resource One CU loans thriving
FARMERS BRANCH, Texas (1/20/11)--Some financial institutions are struggling with loan losses, but one Texas credit union is working overtime to keep up with the loan demand. The $309 million-asset Resource One CU, Dallas, said its loan demand has increased, eclipsing a goal of netting consumer loans by $1 million in one month. Its success is due to several simple solutions and incentives. “One of the more successful methods of increasing loan activity has been through basic promotion in our branches and in mailings to our members,” Mike Roark, chief lending officer of the credit union, told the Texas Credit Union League Lone Star Leaguer Jan. 13). “We found a lot of positive feedback in our reinforcement of a campaign that alerted visitors, ‘If your car isn’t financed with Resource One, you’re probably losing money.’” One way Resource One CU keeps its loan activity thriving--and its membership happy--is by offering its members options to assist in loan maintenance, such as its successful skip-a-payment program. Borrowers are offered the opportunity to skip a payment for their loans up to twice a year or five times total for the duration of the loan, said Roark. “By allowing that flexibility with the member and ensuring them that the credit union understands there are going to be unexpected occurrences in life, our members in turn reflect their positive experience and membership through their continued account activity and even by recommending our institution to their friends and family who may not currently be members,” he added. Another loan option designed for special credit needs, the Credit Builder Loan, has been so popular that it’s being offered to other members who may not have previously qualified. Under this program, the credit union advances the proceeds of the loan into a savings account and then puts that amount on hold until the members pays the loan. “This helps establish a pay history for our members,” Roark said, “and it turns out this type of loan has been beneficial for every type of member, regardless of class or background.” However Roark also credits the hardworking staff at the credit union’s branches. “It’s customary for our managers to visit tellers within their branches on a periodic basis and ask them how many loan referrals they have recently made,” Roark told the league. “It reinforces the importance of putting the member first in their needs, though we also experienced a significant increase in activity when we ran a promotion offering $5 for every application the teller would send the lending department, regardless of whether it was approved or not.” When it comes to the future of keeping its loan programs on the rise, Resource One CU has its focus on offering members more. “Don’t be afraid of a little delinquency,” Roark advised. “Offer more loan opportunities for every type of member and remember that the extra effort and time your employees put in is worth every incentive.”


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