CURE is able to increase credit union loan portfolios in three distinct areas:
1) a secondary lending model for members that have been denied credit
2) commercial truck leasing to major corporations
3) car finding services.
Each of these programs provide fantastic avenues in which credit unions can enhance their portfolios. Credit unions may choose to participate in any combination of the three offerings.
The secondary lending arm of CURE is set up to review all of the credit union’s denied automotive loan applications. CURE then applies its own set of underwriting guidelines to the application to see if the member qualifies for the CURE program. Credit unions fund the loans and CURE guarantees the loans. In this way, credit unions can increase their profits without increasing their risk exposure. CURE’s current loan portfolio participation totals over $38 million.
CURE, LLC also maintains a commercial lending division that specializes in truck leasing for large corporations. The program is designed to assist corporations in the conversion of company- owned trucks to an owner operator model in which the trucker is an independent contractor engaged by the corporation. Corporate sponsorships/guarantees make this program a very low-risk lending opportunity for larger credit unions. CURE currently has a commercial leasing portfolio of over $10 million and anticipates that the portfolio will exceed $30 million by the end of 2006.
CU Carfinders provides car locating and buying services to credit union members. The services offered by Carfinders provide a unique benefit to credit union members and enable credit unions to retain vehicle loans that would otherwise be lost to dealerships. |
