Everyone loves a warm, sunny day, but there is a threshold for tolerance before it becomes too hot to handle. As the summer sun cranks up the heat, people seek ways to escape the extreme temperature. People also love the convenience of credit cards and are willing to pay interest to buy now, but they too have a limit on how high you can crank those interest rates up on your card products before they run for alternatives.

Your loan officers perform a complex and critical function for your credit union. They must be experts on the full suite of loans you offer, know qualifying requirements and assess the financial condition and overall risk of the applicant. Their work, if done properly, generates significant revenue for your organization, so it's important to give them the support they need. Here are five common hurdles CU loan officers face and how you can help eliminate them.

The job of Chief Lending Officer is no small task. A key position, the CLO usually reports directly to the CEO, responsible for the development, management and oversight for credit union lending in the consumer, mortgage and member business lending programs. In other words, they are the person largely responsible for the long-term survival of your credit union. Not just "the numbers man/woman" anymore, this is a job comprised of sales, consulting, management, and now more than ever, technology. 

Your member numbers are up. Your product portfolio has evolved to meet the demands of the financial industry. You invested in the technology that millennials expect, and have been active on a variety of media channels to attract new and younger members. While all signs are pointing to a banner year for your credit union, your loan portfolio is lagging. Why aren't your new members borrowing from your credit union? Let's take look at possible areas where your credit union lending solutions may need some minor tweaks, or possibly a complete overhaul:

Modern day banking involves a large number of regulations that have cost credit unions significant dollars. As a result, financial institutions have to find ways to improve efficiencies in their processes to recover those losses, whether it be through automation, streamlining internal processes, or creating new products and services that minimize manual interaction. At the same time, consumers have gained greater control over the buying process, and gaining and retaining new members is harder now than ever with the wealth of choices consumers have in the marketplace and the ease to move. Credit unions need to ask which processes and products can be optimized to drive member satisfaction in order to retain and gain members, while still having the greatest impact on reducing expenses. Changing your lending process is the perfect tactic for improvement that will attract members and keep them satisfied while reducing costs, thanks in large part to e-signatures.

Going paperless is the ultimate time saver. It allows MSRs to easily access documents and extends the efficiency to members. Remote deposit capture is a convenience that was quickly embraced in the paperless world, saving time and money by eliminating trips to a branch or ATM to deposit checks. When it comes to modern loan processing, the convenience of e-signatures is what your members will come to expect from your credit union. As CU executives know, implementing e-signatures requires investment of both time and money. However, the Return on Investment (ROI) from paperless is very tangible. Here are 4 areas where the ROI of paperless lending is quickly realized:

A recent Gallup poll revealed that Americans have very little confidence in banks, only 27% of people have "a great deal" or "quite a lot" of confidence in them. Banks have never recovered from the financial crisis, which began in October 2008. What does an industry do when it's down? File a lawsuit of course! By now you are most likely aware of the complaints from the Independent Community Bankers of America (ICBA), who have filed a federal suit in Virginia over the NCUA’s new Member Business Loan rules. Counsel for ICBA contends that community banks have lost millions of dollars in commercial loans to credit unions, claiming they can offer more favorable loan terms because of their tax exemption, and arguing over what they perceive as the loosening of regulatory oversight from NCUA. The reality is, individuals and businesses (especially small businesses) are beginning to replace their distrust for banks with trust for credit unions and their products, including consumer and business loans for their needs.

Credit unions have long fulfilled a need that for-profit banks could not meet. During the history of credit unions in America, they are often established in areas where larger banks vacated during times of recession, such as low-income, urban and rural communities. Many credit unions were formed by individuals to meet the needs of a group that they themselves were a part of, whether it was related to employment, a common trade, or attendance at a particular church. Credit unions are self-defined as community institutions, however many often fall short of targeting their community and instead market member-by-member. A successful credit union is one that is able to offer credit union member services within thier community that result in membership growth and loyalty.

Most credit union lending software and loan originations systems are set to gather the standard loan app questions about income, job security, and past credit history; but a credit union loan officer should be ready to dig deeper to understand an applicant’s current needs, as well as long-term goals. Here are five questions to guide a credit union loan officer to determining the best loan option per applicant and become a true financial advisor.

Over two years ago CUNA announced that the credit union industry in the United States had reached the significant milestone of 100 million members. That number represents approximately 43% of the economically active population.¹ The success of credit union membership growth stems in large part from the trust factor, where public opinion of CU's ranks higher than banks, especially since the recession of 2008. A commitment to product development by CU executives has also contributed to sustained growth in the industry, particularly in two product areas: mobile banking and mortgage lending.