Updated data on the credit union difference

We released the first Credit Union Auto Lending Monthly Report in February, new analysis on the dollars and cents behind the credit union difference. This report—and subsequent ones—are based on the dataset of around 30 billion consumer transactions we acquired from Equifax.

Equifax has reclassified loan balance codes going back to 2005 from bank and auto finance companies (no changes were made to credit union loan data), mostly based on bank acquisitions of finance companies.?The numbers are updated in this month’s report.

This change shows even more impactful numbers on the credit union difference, especially related to loan pricing and life-of-loan savings.?

The data strongly reinforces the finding that consumers —especially those on the lower end of the credit score spectrum—are more likely to receive an affordable loan at a credit union than at a bank or auto finance company.

For example, the median 72-month interest rate for a subprime borrower last fall was 44% lower at a credit union compared to a bank. Pre-adjustment reports listed those savings at 30%.

CHECK OUT THE REPORT HERE

Worldwide Foundation announced Ukrainian initiative

The Worldwide Foundation for Credit Unions used $500,000 from its Ukrainian Credit Union Displacement Fund to launch a new credit union lending program to assist vulnerable populations and spur sustainable development in Ukraine. This agreement includes two central credit unions in Ukraine that will pass the funds to individual credit unions to focus support on women and refugee-owned businesses, as well as business loans in rural areas.

Read about the initiative here

Credit Union Magazine, publisher recognized

It’s been a great week for Credit Union Magazine, as it won a Bronze EXCEL Award from SIIA's Associations, Media & Publishing (AM&P) Network. In addition, Magazine Publisher Michelle Willits was named to the network’s advisory board and was also named chair of the board’s Diversity, Equity, and Inclusion Committee. Congratulations, Michelle and the Credit Union Magazine team!

Maine League’s Mason announces retirement

I want to give a special shout out to Todd Mason, who announced his departure from the Maine Credit Union League last week. Todd has been a great supporter of the CUNA-League System and believer in the credit union difference. We wish him and his family the best as they return to their home state of Michigan. Cris Wescott, chief financial officer, will serve as interim president/CEO of the League.

Interchange pushback continues at home

With Congress out until July 10, Leagues and credit unions are taking our advocacy against the Big Box Bill to home states. Veridian Credit Union CEO Renee Christoffer wrote in The Gazette that the bill would “reduce funding for fraud protection with little to no savings for consumers while making credit cards less secure and less accessible.” League of Southeastern Credit Unions and Affiliates President Samantha Beeler also wrote to Sens. Marco Rubio, R-Fla., and Rick Scott calling on them to oppose the bill.

Read the latest on interchange advocacy here

More from 360-degree advocacy

• We wrote NCUA that we appreciate its awareness of climate risk as an area to monitor, but strongly oppose any subsequent mandatory reporting procedures or any actions to prevent credit unions from making decisions to best serve their members.
• We wrote the Federal Housing Finance Agency that expanded unfair or deceptive acts or practices enforcement could create more indirect oversight of credit unions.
• NCUA extended the deadline to July 7 for low-income or Minority Depository Institution credit unions to apply for Community Development Revolving Loan Fund grants.