current | february 2019 products & services - leverage … · an lsp can improve your capacity...
TRANSCRIPT
CURRENT | February 2019
Products& Services
A partnership between LEVERAGE, affiliate of the League of Southeastern Credit Unions (LSCU) and Salus Group, an experienced benefits consulting firm among credit unions, offering a turnkey solution that provides comprehensive and competitive employee benefits and services at affordable prices.
Consolidated Invoicing
Using LEVERAGE Benefits Group’s state-of-the-art billing and administration technology, we use that data to audit each carrier bill on your behalf and consolidate one invoice for all lines of coverage. LEVERAGE Benefits Group bills you in real time, based on accurate enrollment. We begin with a line-by-line audit of your payroll roster against each carrier bill you receive to build out our system using the most accurate data. Our technology contains a robust, rules-based intelligence engine capable of managing intricate voluntary rules or customized parameters by benefit. Our billing team ensures that only the employees that should be on your plan are on your plan … and your bill. You review one audited bill for all lines of coverage and remit one premium amount back to us.
Benefits Consulting
LEVERAGE Benefits Group works with companies of all sizes in Alabama and Florida. Our broad understanding of carrier designs and exclusive carrier partnerships allows us to leverage volume for flexibility and potential cost savings. As a consultant, broker, and administrator, we are uniquely positioned to provide the most comprehensive recommendations and guidance.
Administration
LEVERAGE Benefits Group manages the day-to-day operations associated with employee benefits administration. We process carrier enrollments and changes, as well as review employee benefits selection for accuracy. From open enrollment through termination of benefits, LEVERAGE Benefits Group’s team serves as an extension of your HR and Benefits Department, providing the support you need for streamlined administration of your employee benefits plans. We have eliminated the burden of managing and auditing benefits election paperwork throughout the year and at open enrollment.
Bring Better Benefit Optionsto Credit Unions
For more information about how LEVERAGE Benefits Group can help your credit union, email [email protected]. Your Advantagewww.myleverage.com
Benefits Group LEVERAGE
With LEVERAGE Card Services, your credit union can generate revenue and build member loyalty, all while reducing the burden of ongoing maintenance, through our credit card solutions. Choose from VISA® and MasterCard®; premium, consumer, and commercial card; and full-service and internal credit programs. Plus, we offer wide range of customizable rewards and enhancements.
Beginning with the implementation process, LEVERAGE assist in every phase of your credit card program, including; authorization, payment processing, statement production, and cardholder customer services.
Program Features
• Visa® and MasterCard®; premium, consumer, and small business card options• Marketing solutions to increase activation and usage, like rewards programs, travel accident insurance, and more• Online account access for cardholders, including: bill pay, account summary, transaction tracking, and more
• Comprehensive fraud monitoring incorporatingCardActivation,verifiedby Visa®, MasterCard® Secure, CVV/CVC, (CVV2/CVC2) and Falcon• Ability to customize and adjust program parameters, as needed
Program Benefits
• Superior client service with LEVERAGE as your primary point of contact for questions of concerns, and we facilitate any changes to your portfolio• Cardholder customer service: both over the phone and in writing• Dispute/chargeback processing• Accounting and settlement support
Your Source for Trending EMV Information
For more information about how your credit union can save money on credit card services, email [email protected] Your Advantagewww.myleverage.com
Fast, convenient, and secure access to money is important to members. LEVERAGE Card Services’ debit solution offers cardholders secure and seamless transactions every time they swipe. Our processing platform features a single, streamlined interface/settlement point to numerous regional and nationwide networks, maximizing efficiency and security.
Debit Solution Features
• Efficient use of credit union resources with full implementation• Cost-effective training through extensive library of training webinars• Updates on critical regulatory & operational issues for informed staff• Real-time fraud protection with Falcon• Optional access to more than 30,000 sur charge-free ATMs, including 9,000 deposit-taking.• Time-saving, Online research tool through data navigator
• Dashboard reporting with profitability analysis• Brand continuity with Credit Union Logo” on cards• Optional chargeback services
Management Consulting
• Toll-free access to support specialists located in the United States.• Ability to join member list on more than 30,000 surcharge-free ATMs, including 9,000 deposit-taking, in 50 states and 13 countries.• Turnkey Rewards Program
We make developing and managing a successful debit program simple. One comprehensive platform provides secure and easy transaction for your members while giving you cost-saving benefits.
Collective Debit Processing Generates Low Pricing
For more information about how your credit unioncan save money on debit card services, [email protected] Your Advantagewww.myleverage.com
LEVERAGE Business Lending (LBL) was established to be a loan service provider (LSP), which assists in the packaging, underwriting, closing, and servicing of Small Business Administration (SBA) loans. By teaming with LEVERAGE Business Lending, credit unions gain access to experienced SBA loan processing and servicing operations that allows them to reap the benefits of SBA lending without any additional infrastructure.
An LSP is an outsourced SBA department specifically designed to mitigate the risks in the establishment of a “new” SBA lending program or to assist in the marketing and servcing of an existing SBA lending program.
An LSP can improve your capacity to make commercial loans, without increasing overhead.
LEVERAGE Business Lending Committment
• Delivery• Compliance• Service
LBL provides training for every aspect of the SBA lending process, from origination to liquidation. Our training provides you with the tools to run a successful SBA program.
SBA 7 (a) Advantages
• Higher net interest margins• Higher fee income• Reduced credit risk with a 50%-90% government guarantee • Guaranteed loan portion does not count toward member business lending cap• Safely increase commercial loan portfolio with a focus on job creation for economic growth
Grow Business Loans with Government Guaranteed Lending
For more information about how LEVERAGE Business Lending can help drive your small business loan portfolio, email [email protected].
Your Advantagewww.myleverage.com
Regulations and compliance guidelines have never been more extensive and complicated than they are today. Meet these regulatory requirements and stay compliant with services provided by certified audit and compliance field experts. LEVERAGE’s audit and compliance services offer a comprehensive menu of financial and compliance audits, all at competitive prices, including:
Audit Solutions
• Supervisory Committee Audits/ Agreed Upon Procedures• Verification of Members’ Accounts• Interim/Internal Audit Services• Verification of Cash & Consigned Items• Fraud Audits
Compliance Solutions
• ACH Audits• Bank Secrecy Act/Security Reviews• OFAC Assessments• SAFE Act Audits• Website Reviews• TRID Audit • BSA and ACH Risk Assessments• Fair Lending Compliance Audit
Management Consulting
• Bond Claims & Special Investigations• Change in Management Audits• Reconciliation Services• Form 990 Preparation• Assistance in Preparing Accounting Records
Credit Union Experts Helping Credit Unions Succeed
For more information about how your credit union can stay compliant and save money on audit services, email [email protected]. Your Advantagewww.myleverage.com
A Divis ion of LEVERAGE
Consumers have spoken loudly that rewards programs are a major factor when selecting a primary financial institution. LEVERAGE Rewards is a valuable solution for increasing loyalty and achieving strategic objectives such as driving revenue, enhancing member experience, and increasing transaction volume. Our program offers robust redemption options for members in the areas of merchandise, travel, and gift cards and a unique loyalty platform for deepening relationships.
LEVERAGE Rewards is not only able to provide your members with points for debit and credit card usage but also for key product adoption such as auto loans, home equity loans or lines of credit, and other consumer loans.
Program Features:
• Customized program parameters to meet member needs• Customized website with single sign-on capabilities• Marketing and program performance consulting• Dynamic program administration tool• Comprehensive analytics and reporting
LEVERAGE Rewards has perfected the process for householding accounts. We can link multiple accounts to an individual, as well as linking family members, giving members the ability to combine points and earn rewards faster. We also have the option for point gifting.
Live Life. Love Rewards.
For more information about how LEVERAGE Rewards can help retain your most profitable member relationships, email [email protected].
Your Advantagewww.myleverage.com
Credit unions are under increased pressure to find ways to better manage third-party vendor relationships. LEVERAGE’s contract management solution automates the entire process so that credit unions have one system for managing their contracts from start to finish. The system provides peace-of-mind when preparing for your next exam by providing tools for organizing; assessing risk; tracking and monitoring third-party agreements; and ensuring critical document retrieval. Plus, credit unions on the LEVERAGE contract management platform average a higher score on the management section of their exam than those that do not.
The website audit includes:
• Comprehensive, Web-Based Contract Database• Custom Management Reports with Dashboard Management Tools• Customizable Risk Assessment & Due Diligence Templates• Automated Triggers/Notifications for Complete Contract Lifecycle Management• Automated Risk Scoring Based on the Complexity & Exposure of Each Relationship• Comprehensive User Guides & Ongoing Support Services
Program Benefits
• Simplify the Storage & Retrieval of Contracts, Risk Assessments, & Due Diligence Data• Standard Risk Assessment & Due Diligence Templates Based on NCUA Guidelines• Avoid a Lapse in Service or a Commitment to a Service that May Not Be Needed• Eliminate Automatic Renewals which Can Lead to Increased Pricing• Professional Staff Dedicated to Gathering Due Diligence & Providing Limited Reviews• OFAC Reports• Cloud-Based System
Experience Seamless Vendor Management
For more information about how your credit union can stay compliant on contract management solutions or to request a system demo, email [email protected].
Your Advantagewww.myleverage.com
In response to the high volume of requests from our credit unions, LEVERAGE has partnered with CRF Advisors to offer a CECL (Current Expected Credit Losses) solution. This offering will provide individualized consulting to assess how CECL Methodology will affect your credit union, what platform and data sets are needed to comply with new reporting requirements, as well as ongoing support for data collection and storage, forecasting, and reports.
Current Expected Credit Losses
CECL is used as shorthand for the new GAAP requirement to include expected life of loan (LOL) losses in the allowance for loan and lease losses (ALLL), versus the current incurred loss model. Generally, loss estimates will increase, be more volatile, and require subjective assumptions. Therefore, processes must be enhanced and well-documented to ensure future compliance as new CECL models and data requirements go into effect.
Loan Loss Reserve
CECL Methodology will change loan loss,reserve calculations, and will have implications across many aspects of day-to-day operations
for credit unions. CRF Advisors will review and analyze methodologies, provide assistance with documenting requirements, ensure proper systems inputs, and monitor roles and responsibilities to ensure compliance and transparency of the implementation process throughout the organization.
Credit Union benefits from CRF Advisors include:
• Consulting and guidance to your management team throughout the design, implementation, and ongoing use of the CECL Program and Platform • Access to CRF Advisors dedicated experts for development, customization, implementation, and monitoring of the CECL Platform and Program • Established and approved timelines to track progress of the CECL Program with regular communication between CRF Advisors and credit union project team to ensure quality and accomplish objectives • Customized dashboard to meet the needs of your credit union with a broad range of datafields • Automated reports and summaries generated to satisfy regulatory requirements
Complete CECL Solution.CRF Advisors, Inc.
For more information about how CRF Advisors can assist credit unions with the complete CECL solution, email [email protected]. Your Advantagewww.myleverage.com
FAQs - CECL Complete Solution with CRF Advisors
Q: What is the CECL requirement?
A: In 2016, federal regulators issued a new GAAP accounting standard for the calculation of the Allowance for Loan and Lease Loss (ALLL). This new standard utilizes the current expected credit loss (CECL) calculation method versus the current incurred loss model.
Regulators have directed credit unions to comply in their Call Reports beginning on March 31, 2022.
Q: How will the implementation of the new CECL standard affect my credit union?
A: Generally, loss estimates will increase, be more volatile, and require subjective assumptions. Therefore, processes must be enhanced and well-documented to ensure future compliance as new CECL models and data requirements go into effect.
Q: How will the CECL requirement change what we currently do for loan losses?
A: Each credit union is different, and CRF Advisors will consult with each leadership team to satisfy the CECL requirements with a clear, manageable, and complete solution.
Some of the key changes associated with the implementation of CECL are:
• Move from incurred loss (historical losses) to a lifetime horizon (life of loan/ asset losses)• Institutions will use a broader range of data to estimate expected losses• Accounting for purchased credit impaired loans and Off-Balance-Sheet Credit Exposures
Q: Why have credit unions already begun to implement a CECL solution and what is the advantage of doing so?
A: One reason credit unions have opted to begin implementing a CECL program is to ensure they have enough time to see the effects on their balance sheets and make necessary changes before the required reporting date. CECL has various calculation methodologies, and CRF Advisors will consult with your management team and board to ensure they understand and select the most effective methods to best meet credit unions’ needs.
Q: How does CRF Advisors differ from other CECL Data Analytics Solutions?
A: CRF Advisors’ team uses its 30 years of experience in lending, credit, auditing, and credit modeling to develop a complete CECL solution that includes customized: training for management and board, program development, and reporting for each credit union. Also, the pricing for CRF Advisors’ complete CECL solution is typically lower than other competitive CECL solutions.
It’s no longer a matter of if, but when your credit union could be attacked; credit unions similar to yours are experiencing breaches. Our team is committed to helping you improve your security posture and comply with regulations through our managed security service, CU Assured.
CU Assured monitors your entire credit union’s IT environment to detect intrusions, threats, and vulnerabilities on a dashboard providing detailed reporting, information, analysis tools, and alarms. Since CU Assured is built for credit unions of all sizes, it has two options for monitoring: Federated and Multitenant. With Federated, the CU Assured Server is at the credit union. With Multitenant, the CU Assured Server is located in a PCI compliant Operation Center, and alarms are sent from Sensors at the credit union. The CU Assured team will be there to monitor and help your IT Staff in both options.
Program Benefits
• Assist in complying with NCUA Regulation 748 • Reduced Operational Costs & improves IT staffefficiency • CU Assured Cyber Security Team support • Detects intrusions quickly
Unified Security Management (USM)
Centralized security monitoring provides powerful threat detection capabilities across your cloud and on-premise landscape with reporting capabilities that help comply with NCUA Regulation 748.
Integrated Threat Intelligence
Actionable threat intelligence updates from CU AssuredaredeliveredcontinuouslytotheUnifiedSecurity Management platform. Powering the platform with up-to-the-minute threat intelligence is AlienVault USM and the Open Threat Exchange®, OTX™. USM Anywhere is used by more than 7,000 commercial customers with a simple and affordable solution that centralizes threat detection, incident response, and compliance management for all environments.
Security Orchestration & Automation
Easily extend threat detection and incident responsetothird-partyproductslikeOffice365,Cisco Umbrella, and Palo Alto Networks. Continue to build on your current security software.
Cyber Threats Don’t Sleep.Neither Should Your Security Team.
For more information about how CU Assured can manage your security more efficiently, email [email protected]. Your Advantagewww.myleverage.com
FAQs - Marketing Program from CU Assured
Q: How does CU Assured access my credit union’s IT environment?
A: We will consult with you to review your size, number of IT assets, and IT environment to recommend one of our two monitoring forms with CU Assured: Federated or Multitenant.
Federated - A CU Assured All-in-One (AIO) isinstalledatthecreditunion’smainoffice.The AIO collects logs and events from servers,PCs,switches,routers,firewalls,applications, and correlates the data looking for Indicators of Compromise (IoC). The credit union accesses the CU Assured dashboard to monitor and address threats. The AIO also sends alerts to the CU Assured Team who monitors and analyzes events. When required, the CU Assured Team notifiesthecreditunionconcerningIoCandis available to help.
Multitenant - Sensors are installed at the credit union’s locations. These sensors collect logs and events from servers, PCs, switches,routers,firewalls,applications,andforwards all events to a CU Assured All-in-One (AIO) located at a PCI compliant Operation Center for correlation and analysis by the CU Assured Team. When required,theCUAssuredTeamnotifiesthecredit union concerning IoC and is available to help. The credit union accesses the CU Assured dashboard to monitor and address threats.
Q: What is the definition of an asset on the credit union’s IT environment?
A: An asset is one IP address under your environment. All assets are monitored by CU Assured.
Q: Do I have to give you a list of all my IT assets before launch?
A: We will scan your environment to determine the assets in your environment.
Q: How does CU Assured work with my current security software?
A: Logs are forwarded to the CU Assured AIO or Sensor. A current list of products with prebuilt plugins can be found here: https://www.alienvault.com/documentation/usm-appliance/supported-plugins/supported-plugins.htm
Q: Can I demo CU Assured for testing or demo?
A: Yes. Please contact your Business Development Consultant or CUACG Auditor.
In a world in which Cyber Security can never betaken for granted, organizations must be positioned to handle the unexpected. To support the ever-increasing Cyber Security needs of credit unions, LEVERAGE has teamed with PIVOT Group to focus on effective solutions for auditing, assessments, and compliance services. PIVOT Group has a 17-year history of providing Cyber Security solutions in order to protect data and systems, and comply with Information Security and Data Privacy regulations.
The PIVOT Group is dedicated to protecting today’s credit unions from the multitude of current and emerging security threats and has developed compliance offerings that incorporate analysis and execution of the following elements:
• Vulnerability Testing• Penetration Testing• Social Engineering/Phishing Testing• IT Security Control Assessment• Cyber Security Risk Assessment• Information Security Training
PIVOT Group is the only neutral firm that solely focuses on Information Security services. Rather than selling or reselling technology, our unique organization redefines Information Security by tailoring solutions. We take the fear out of Information Security and help Credit Unions make it a business enabler and competitive advantage. Our international consultant practice delivers the complete life cycle of security services that meet the business, resource, and regulatory requirements of our clients through working with our clients on the following elements:
• Meet NCUA Reg 748 A&B Requirements• Meet Data Privacy State, National, and Regulatory Compliance• Audit and Test Human, IT, and Physical Controls• Audit and Test Incident Response Programs• Identifying Cyber Security Risks• Provide Real Life Security Awareness Programs• Prepare Actionable Remediation Plans Prioritized by Criticality• Share Information Security Best Practices• Develop Executive Management Reporting on Audit Results and Business Risks
Cyber Security Audit and Compliance Services
For more information about how PIVOT Group can manage your security more efficiently, email [email protected]. Your Advantagewww.myleverage.com
FAQs - Marketing Program from PIVOT Group
Q: : Is my credit union required to have a Cyber Security program in place?
A: NCUA Guidelines under Reg 748A require each credit union to “Implement a comprehensive written information security program that includes administrative, technical, and physical safeguards.” In addition, the program needs to be assessed on a regular/required basis and adjusted accordingly based on the results of the assessments.
Q: How will my staff know how to implement these measures?
A: PIVOT offers an education component to train all employees using the most up-to-date best practices for handling current threats and compliance requirements.
Q: We must respond to an examiner in the next 30 days. Can PIVOT help?
A: Yes. PIVOT’s services are provided based on your needs and time frames both pre-exam and post-exam.
Q: How should our credit union begin assessing our needs?
A: PIVOT has created a Road to Successful Information Security Methodology.
1. The first step is to “Look.” You should do a business assessment to identify critical information assets and internal and external threats and should perform a vulnerability assessment to evaluate risks. 2. The second step is “Plan” or create a strategy based on those assessments.
3. The third step is “Act.” PIVOT Group works with your team and your roadmap from the above steps to maintain a safe environment and meet regulatory compliance at your credit union.
4. The final step is “Repeat.” Information Security is a process requiring continual assessments and improvements.
Q: How often is vulnerability, penetration and phishing testing done?
A: It depends on the size of the credit union, the complexity and sophistication of the IT infrastructure, and if the credit union has experienced any material changes or data compromise. A baseline line requirement for smaller credit unions is they should be performed at least once a year. For the medium to the largest credit unions they are performed quarterly, monthly, and sometimes weekly depending on the results of their Risk Assessments.
To help credit unions maximize the value of their critical communications, LEVERAGE, in partnership with Diamond Communication Solutions and its agent, Print Resources, Inc., has created an array of products and services that can be combined and customized to meet your specific needs. Using our electronic statement or print and mail products in conjunction with our dynamic messaging capabilities allows credit unions to make the most of their member communications.
Our Services
As a trusted communication expert for credit unions, Diamond Communication Solutions is committed to bringing you more value with each electronic and print document delivered while protecting your members’ privacy every step of the way. With 20-plus years of experience supporting credit unions, we’ve developed products and services that focus on maximizing your personalized member communications while reducing costs.
E-Statement Efficiencies
An important cost-saving measure for credit unions is the use of E-statements. Through LEVERAGE and Diamond Communication
Solutions, your credit union has maximum control and flexibility to tailor your documents using completely variable and dynamicmessaging and graphics. With this strategic approach to the design and delivery of your documents, you can:
• Create full-color, targeted transpromotional communications • Communicate in your member’s preferred method — with electronic or print documents • Reduce paper/postage expenses by transforming your documents into E-Statements
With strategically-located facilities across the country, credit unions will appreciate the efficiencies and synergies of working with a single source, as well as the expertise of a knowledgeable team of industry professionals.
Credit Union Services from Diamond Communication Solutions include:
• Statements (member, credit card, mortgage, and HELOC)• Daily Notices • Loan Coupons • 1098/1099/5498 Statements • Marketing Communications
Electronic and printdocument delivery solutions
For more information about how Diamond Communication Solutions can assist your credit union, email [email protected]. Your Advantagewww.myleverage.com
FAQs - Diamond Communication Solutions
Q: To what degree is Diamond involved with credit unions?
A: Diamond currently works with more than 450 credit unions for their electronic and print delivery service needs.
Q: Does Diamond work with my core provider?
A: Diamond works with most core providers in the marketplace today.
Q: Does Diamond have an E-statement solution?
A: Diamond has an E-statement Module that integrates with most online/mobile banking providers in the marketplace today. The E-statement Module has more than 290 million images stored on this site.
Q: How long does this take to implement?
A: The typical implementation time is 60-90 days. Diamond has completed implementations in a shorter timeframe, if needed.
Q: What support is provided to the credit union during implementation?
A: Diamond will work with each credit union to develop a Scope of Work for the specific project that clearly defines all the specifications and deliverables of the project in one document. In addition, there will be a Project Manager assigned to the credit union to support all of their needs.
Q: What systems do you need access to?
A: The credit union will need to access DiamondView (client portal) to securely review proofs and reports for their projects. DiamondView can be accessed with any current browser.
Q: What support do you provide to the credit union after implementation?
A: The Project Manager assigned to each credit union will be available to support any issues that involve the project(s) that have been implemented.
Q: Will there be any down time to the members during implementation of any project?
A: There will be no scheduled down time to members.
Q: Will our members have a delay in receiving new statements? If so, how much?
A: Delivery is predicated on the USPS meeting their timeframe of 3-5 business days for First-Class Mail. Diamond does provide Mail Tracking for statements. Mail Tracking allows the credit union to know where their statements are in the USPS and the credit union can track delivery.
Member Business Financial Services, LLC (MBFS) was created to assist credit unions in providing services to the local business community in a safe, efficient, and effective manner. Owned by credit unions, MBFS uses that inside perspective to capitalize on the cooperative nature of the credit union movement in helping credit unions provide business loans and other financial services at a cost lower than they could individually. Since its inception in 2008, the CUSO has grown to manage 2,300+ business loans with more than $750 million in business loan balances.
Business Loan Training and Program Strategic Development
MBFS offers comprehensive training to credit union boards of directors and senior management on a wide variety of topics. Training can be delivered in multiple formats, including online webinars, live video and in-person training. All programs are customized to meet the specific needs of individual credit unions with consulting engagements focused on a wide range of strategic topics, including: loan policy development, operational processes and procedures, sales planning, and risk management.
Transactional Services
• New Loan Credit Analysis • Annual Reviews • Portfolio Reviews • Loan Documentation • Loan Servicing • Portfolio Monitoring & Reporting
Credit Union Shared Relationship Managers A serious challenge for credit union business services programs is hiring and retaining skilled, qualified candidates in a cost-effective fashion. To address this need, in 2015 MBFS began offering credit union clients a Shared Relationship Manager service. In this model, MBFS hires a business lender to work in a geographic market shared among credit unions. Participating credit unions share in new loan originations and may choose to purchase a portion of all loans originated. Coupled with the NCUA’s new business lending regulations, this system allows credit unions to efficiently grow their portfolios of both member and nonmember business loans (the latter of which do not count against the business lending cap).
Building Relationship throughBusiness Services
For more information about how MBFS can assist credit unions, email [email protected]. Your Advantagewww.myleverage.com
FAQs - MBFS
Q: Is my credit union big enough to do business lending?
A: 70 percent of credit unions over $50 million in assets have at least one commercial loan on the books. That doesn’t include business purpose loans under $50,000 or residential rental properties that do not meet the regulatory definition of a business loan. In 2017, the NCUA also provided small credit unions regulatory relief that are looking to assist members with business-related needs.
Q: What if we don’t have anyone in-house to do business loans?
A: NCUA Regulations permit the use of a CUSO that is independent of the loan transaction to assist the credit union with business lending. Like other vendors, the credit union must conduct due diligence along with understanding risks associated with business lending relative to size and complexity of the loan portfolio.
Q: Are residential rental properties still business loans?
A: Yes and No. In 2018, Congress amended the Federal Credit Union Act so that loans secured with any 1-4 family residential property are no longer classified as a member business loan. However, credit unions must still properly underwrite, close and manage the risk associated with this category of loan. Residential investment property loans have many of the same risk characteristics of business loans and should be managed differently than residential mortgages.
Q: Why are SBA loans so difficult?
A: Loans guaranteed by the Small Business Administration are an excellent way to complement your business lending program and provide financing to the local community. However, unless the credit union has extensive in-house resources and experience in underwriting, closing, and servicing these loans, it can be a frustrating experience. The SBA loan process can be quite different from traditional business loans. It is highly advisable to utilize a third party who specializes in this type of financing to make the process much more pleasant for the borrower and credit union.
Q: Can I buy participation loans?
A: Credit unions can purchase a portion of other credit unions’ business loans as an excellent way to diversify risk, build income, and assist other credit unions. Credit unions purchasing loans need to exercise the same level of diligence in originating and closing the loan as if they were making the loan to one of their members. Participation loans should have the same credit criteria as other loans and should be viewed as a “loan” with credit risk and not an investment.
With LEVERAGE’s partnership with LendKey, the leading lending-as-a-service provider to more than 285 financial institutions, credit unions have easier access to prime consumer loan participations. Focused on the $300 billion home improvement market, credit unions can gain access to loans made to prime homeowner borrowers and benefit from multiple tactics to further mitigate risk.
LendKey’s unique solution allows lenders access to participation loans on a recurring basis, which minimizes on-going diligence and maximizes access to new loan volume. Lenders benefit from fractional ownership in loans, which broadens their portfolio and enhances risk mitigation. LendKey also manages the entire life of the loan process, as well as the marketing and lead generation efforts, allowing credit unions to focus on serving their membership.
To-date, the program has helped credit union and bank partners disburse more than $1.7 billion to prime borrowers.
Program Benefits
• Easy access to purchase loan participations from prime borrowers• Deploy capital effectively• Simple and effective• Proven performance• Nationwide loan sourcing creates geographic diversity and risk mitigation• Credit default insurance available• Prime homeowner borrowers• Managed network of contractors
Program Success
• $300 billion market opportunity• Nearly $1 billion in participated loans facilitated for credit unions• Average net yield of 6.00%• Weighted average credit score is 751• Participation interests of 10% at loan level mitigates risk
Giving Credit Unions the Inside Track with Prime Borrowers
For more information about how Lendkey can elevate your credit union’s success, email [email protected] Your Advantagewww.myleverage.com
LEVERAGE’s Check Printing Contract Consultant Program provides volume discounts to help large asset sized credit unions significantly reduce the cost of printing member checks. Check printing profit margins are incredibly high and only someone with specific vendor contract experience and marketplace knowledge can secure the highest possible savings for credit unions. Based on proven results, the typical total savings over five years for your credit union would be:
• Credit unions with 25,000 checking accounts: $250,000 to $300,000• Credit unions with 50,000 checking accounts: $500,000 to $600,000• Credit unions with 100,000 or more checking accounts: $1,000,000 and higher
Program Features
• Consultant with 35 years of experience will negotiate contract on behalf of the credit union• No out of pocket expense to the credit union – the check printer funds the consulting fee. The Consultant only gets paid a percentage of the contract savings• The vast majority of clients choose to stay with their current vendor
Program Benefits
• Savings of up to 50% of printing costs over a five year contract• Savings can be passed on to members in the form of lower check printing fees• Savings can be retained by credit union to increase non-interest income• Credit union can both reduce costs and increase non-interest income
Reduce Costs for Check Printing
For more information about how your credit unioncan save money on check printing, [email protected] Your Advantagewww.myleverage.com
What is Automated Collection Technology (ACT)?
ACT provides innovative GPS technology that aids credit unions in the ability to collect auto loan payments more efficiently by incorporating audible reminders and vehicle immobilization when needed. These features are prompted automatically, based on preset dates, and do not require additional personal interaction with the borrower. This enhancement improves performance by creating greater awareness of payment due dates and consequences for members.
Why PassTime?
PassTime is the industry leader in technology development yielding unmatched support and service. By choosing PassTime, credit unions are ensured full-service installation at the members’ convenience managed by a national dispatch center. PassTime service includes 24/7 live customer support, field training and support for staff, and tow/impound lot notification services.
PassTime stands out as a national leader in device compliance equipping credit unions with Compliance Officer Training and Management, FTC reviewed PassTime Consumer/Member Disclosures, and already established CFPB and Larger Participant Guidelines.
Credit Union Results
• Increase in new members with a new lending tier for subprime borrowers • Improve member payment performance • Increase in recovery time• Decrease in recovery cost/loss• Increase originations without increase in staff• Increase in cross-sell penetration
PassTime is able to assist credit union loan programs with either a repossession redemption or subprime origination strategy.
Enhance Your Auto LendingPerformance
For more information about how ACT can enhance auto lending performance, email [email protected]. Your Advantagewww.myleverage.com
LEVERAGE’s partnership with marketing gurus TwoScore and Gira{ph} creates a powerful synergy to engage small-asset- size credit unions’ marketing efforts affordably and effectively. Headed by former credit union executives who understand the unique challenges of the industry, these companies tailor marketing needs to fit budget and objectives.
From culture development to new logos and website redesigns, TwoScore and Gira{ph} help you bring your brand to life for existing and potential members. By working in tandem, these companies maximize your marketing dollars and zero in on exactly how to make your credit union stand out in the marketplace.
TwoScore offers strategic marketing campaign design and development, while Gira{ph} provides graphic design and collateral in the art and design of credit union marketing. One of the many strengths Gira{ph} brings to the table is “phormula,” an easy to use, affordable, flexible content
management system that makes it simple for credit unions to update content using measurable objectives to assess member experience.
Program Success:
• 450% ROI in first year of auto loan promotion for $19 million CU• 9% auto loan growth for $44 million CU• 65% growth of total loans in the first six months for a $53 million CU• 13% achievement of annual mortgage goal by a $26 million CU• 91% growth of total loan portfolio by a $27 million CU• Clients have achieved 178.16% more loan
growth than their peer credit unions• Clients have achieved 13.59% better ROA
(0.07 basis points)• Clients have achieved 460.44% more
12-month net income growth than their peer credit unions
• Clients have achieved 33.36% higher 12-month growth in total revenue than their peer credit unions
Helping Credit UnionsStand Taller
For more information about how Twoscore and Gira{ph} can enhance improve your credit union’s marketing efforts, email [email protected].
Your Advantagewww.myleverage.com
LEVERAGE offers a variety of human resources services developed specifically for credit unions. Delivered by human resource professionals and valued business partners, LEVERAGE HR Services brings best-in-class human resource solutions to credit unions that improve performance, maximize efficiencies, and ensure compliance.Program Services • Employee & Executive Placements • Automated Performance Management Systems • Salary Administration Programs • Management Training & Consulting • Succession Planning • Pre-Employment Assessment Tools • HR Forms & Tools • Outsourced Payroll & HR Administration Services • Customized Consulting Services
LEVERAGE, in partnership with valued business partners, has extensive expertise in credit union human resource management and provides a broad perspective of the marketplace for all size credit unions. We work directly with you to find the right solution for your credit union.
Develop Employees & Improve Performance
For more information about how your creditunion can offer more efficient human resourcesservices, email [email protected]. Your Advantagewww.myleverage.com
HRLandrum
The most challenging task for credit unions today is identifying and securing talent that will lead the organization into the next generation. Finding the right leadership can improve board relations, increase membership satisfaction and staff retention, ultimately leading to the goal of enhanced financial performance.
LEVERAGE has partnered with Credit Union Resources to deliver a customized search process that goes beyond traditional advertising and interviewing. We seek out the right candidate that fits into your credit union’s culture and needs.
We Offer: • Searches with a local, regional or
national focus• A service that is totally focused on the
credit union industry• Processes to identify key attributes
that will work best with the culture of your organization
• A proven track record of successful placements that move credit unions forward
Executive Search
For more information about how Executive Search can assist you, email [email protected]. Your Advantagewww.myleverage.com
Increased regulatory burden and shrinking net interest margins present serious challenges to earning income for today’s credit union. LEVERAGE partner, John M. Floyd & Associates (JMFA), has built an all new overdraft program–complete with all new analytics, all new recommendations, all new reporting and tracking, as well as all new communication materials for account holders. This new program helps credit unions recover revenue lost as a result of regulatory changes.
JMFA OVERDRAFT PRIVILEGE® offers something the competition does not, a guarantee. Credit unions receive a 100 percent compliance guarantee for all state and federal regulations mitigating your risk. In addition to that, their fees are contingency-based, so they succeed only when a credit union succeeds.
Program Benefits
• Additional Revenue Stream & Source of Income• Minimized Risk with 100% Compliance Guarantee• Easy Installation & Comprehensive, Effective, Onsite Training• A Socially Responsible Program That Is Fully Disclosed & Fully Transparent• All Aspects of the Program Are Included in Our Contingency-Based Fee Structure
Revenue Generation in a Compliance-Driven Market
For more information about how your creditunion can increase non-interest income, email [email protected]. Your Advantagewww.myleverage.com
The financial industry is one of the most targeted when it comes to data theft; proactive identity protection and fraud detection mitigate the impact of these attacks quickly and easily, building member trust.
LEVERAGE’s Member Security Center increases non-interest income and strengthens member relationships through an unmatched authentication program. The program offers a variety of two-factor authentication options that go above and beyond basic passwords and security solutions. Our technology proactively detects stolen Personally Identifiable Information (PII) and compromised confidential data on an international level and alerts members if it finds their PII being bought or sold online.
Program Features & Benefits
• Platform Operated by Leading Provider of Global, Enterprise-Level Technology• More than Credit Monitoring, Products Include Full-Service Identity Theft Protection, Insurance & Restoration, Identity Authentication & Voice Biometrics, & Proactive Breach Preparation from Discovery to Resolution• Unmatched Authentication Solutions• Strengthen Member Relationships & Trust• Proactively Protect Member Data• Respond Quickly in the Event of a Breach• Mitigate Liability by Offering a Prompt Solutions
Identity Protection & Fraud Detection for Member Security
For more information about how your credit union can save money on identity protection and fraud detection, email consult@myleverage. Your Advantagewww.myleverage.com
LEVERAGE, powered by Office Depot, offers a National Buying Program that helps credit unions of all sizes maximize savings through collaborative buying power. Credit unions save money on office and machine supplies, furniture, technology, custom stationery, digital printing, promotional products, break room products, and much more. The more volume the program sees, the more savings credit unions and program users will see!
Program ConveniencePurchase supplies in the method you prefer. No matter how you choose to shop Office Depot, you will find the dedicated help you want and the unbeatable convenience you deserve.
• Online• Phone• Fax• In-Store
Program Benefits
• Best Value List: Up to 80% Discount on over 300 items chosen especially for credit unions.
• Business Select Catalog: Receive 15% off everything in the BSC. Add Item #333169 to your shopping cart and receive your free catalog with your order.
• Free Next Day Delivery ($50 minimum order)• Monthly Specials• Huge Savings on Copy & Print Services:
2.5 cents Black & White | 29 cents Full Color• Store Purchasing Cards: Same program
savings when you shop at any of Office Depot’s 1000+ stores
• Customized Ordering Site
Collective Buying Saves OnOffice Supplies & More
For more information about how your credit union can reduce expenses, office supplies, and more for your customers, email [email protected].
Your Advantagewww.myleverage.com
Strategic Remarketing Solutions (SRS) is a vehicle repossession and remarketing company that is uniquely qualified to meet your individual needs. Partnership with SRS provides a single source to efficiently manage your repossession needs and maximize the remarketing of your vehicles. A network of repossession vendors will provide you with the confidence that your vehicle will be recovered quickly and professionally, at a reasonable cost. Our alliance with Remarketing by Element puts you in a strong position to optimize sale prices and reduce cycle times when liquidating repossessions. Remarketing by Element combines a prominent position in the auction lanes with industry acknowledged branding, marketing and highly experiencedrepresentation.
Strategic Remarketing Solutions
• Repossession Services • Experienced, Professional Network of Vendors • Client Portal with Access to Real-Time Recovery Information • Title Management Services
Remarketing by Element
• Mega-sales and Promotions • On-site Representation • Strategic Repair Recommendations • Top-lane Position and Competitive Fees • Easy-to-Use Web-based Tools • Honesty and Integrity Builds Trust
Get measurable results from experienced professionals who understand your unique repossession and remarketing portfolio.
Smart Recovery. Strong Returns.
For more information about how your credit union can save money on remarketing solutions, email [email protected]. Your Advantagewww.myleverage.com
This unique program is the ideal collaboration, enabling your credit union to earn non-interest income while offering your members the advantage of premier savings from Sprint.LEVERAGE, through partnership with CU Solutions Group, is excited to announce the new Sprint Credit Union Member Discount program. The new exclusive offer from Sprint gives credit union members cash back and an annual loyalty reward on every line they have with Sprint — with no limits.
Program Features• Enhance the value of membership• Cash back rewards go directly into your credit union account• Track sales and activations• Earn non-interest income• Free marketing materials• Sprint handles all member service needs
Member Benefits• $100 with every new line activation• $100 loyalty rewards every year for every line• Credit unions receive $23 for each new Sprint line activated
Sprint Into Additional Revenue
For more information about how your credit union can sprint into additional revenue, email [email protected]. Your Advantagewww.myleverage.com
