Chris Trivers

#CreditUnion Opportunity Alert. #Capitalinfusion I'd like to highlight one of NACUSO's long-time business partners, CU Capital Management. Mitchell Amsler and crew have been amazing supporters of #CUSOs and credit unions. Let me make this simple. Could you, credit union, use a capital infusion to check some to-do items off your list or re-position your financials? Consider a sale-leaseback option and put your physical assets to work now. I've always believed innovation can come in many forms and success is measured by impact, not newness or blingy apps. I, like many others, believe many CUs will continue to benefit from physical spaces and branches. Why not use those assets to invest in your and your members' future. Tell'em Adam the Deal Man Lee sent ya.

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Banks and credit unions are facing significant challenges in scaling hyper-personalization. Anson Vuong and Anand Balasubramanian break down the five key steps every institution needs to take to harness the power of data, AI, and customer-centric innovation in this latest piece from Cortico-X. #FinancialServices #BankingInnovation #FinTech #CX #CustomerExperience

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"99%" Better CEO Vishal Garg's answer to the question “How much of a loan officer’s current role will be replaced by automation over the next few years?” First off, this was a tremendous panel on leveraging AI in mortgage originations at the LendingTree Summit this week in Charlotte, moderated by the peerless Julian Hebron and including OpenAI GTM lead Kaelin Sprawls and Rate.com CTO Ramesh Sarukkai. It was a treat to hear these three experts share their perspectives. It also marked for me a clear dividing line between visions of what mortgage originations will look like in the future (next decade and beyond). Julian pointed out that discussions on the use of AI in mortgage have been mostly theoretical over the last few years, but NOW, the industry is getting data and feedback on adopted AI use cases. I.e. it’s getting real. Which leads back to Vishal’s prediction. Taking his 99% at face value, that’s effectively saying the loan officer will be completely replaced by automation. This prediction matters because of who Vishal is and what he represents. Over the last 8 years, Better has raised $1.5 billion and carries a high profile among mortgage originators. And this support is for an idea (not for a foundationally strong business as Better has yet to achieve financial success). It seems clear that this idea is the elimination of the loan officer from the mortgage origination process. This is attractive as loan officer compensation represents ~35% of the ~$11K total cost to originate a loan. Eliminating most of that expense cuts costs for borrowers and improves profitability for originators with the tech in place. (If further evidence of intent is needed, Vishal also confirmed that Better is working to get their proprietary AI agent Betsy, licensed with the NMLS). On the other side of the line is Rocket Mortgage with their near 4,000 loan officers. Rocket has been an industry leader for three+ decades and remains the operating benchmark for most originators. Rocket is clearly bullish on the role of the loan officer in originating mortgages. They too have invested heavily in technology, with hundreds of millions spent to make it easier for their loan officers to do their jobs and for prospective borrowers to do a lot of the work on their own. So after years of kicking this idea around in casual conversation, the bets on the future of the loan officer are getting clear. The loan officer will be replaced VS the loan officer remains a fundamental part of originating a mortgage. (In my mind the strategy of “somewhere in between” where technology is built to assist loan officer functions is a bet on the loan officer). I’m betting on the loan officer. How about you?

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Our experience - Some #CreditUnions are taking ownership of their 3rd Party relationships. We have tested 3rd party applications at the request of our Credit Union Clients prior to integrating into their production environment. It's the exception vs. the norm, but beats the alternative of finding out their 3rd party solution introduced #vulnerabilities into their environments. Rebyc Security #vendormanagement #vendorriskmanagement NCUA

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🚨 CFPB Orders TD Bank to Pay $28 Million Fine 🚨 🏛 The Consumer Financial Protection Bureau (CFPB) has ordered TD Bank to pay this fine for repeatedly sharing inaccurate and negative customer information with consumer reporting companies. This illegal behavior threatened the ability of tens of thousands of consumers to access credit, housing, and employment. The fine includes $7.76 million in redress to affected consumers and a $20 million civil money penalty. 📊 CFPB Findings: • TD Bank failed to promptly correct its credit card reporting errors, sharing inaccurate information about credit card delinquencies and closed accounts. • The bank continued to share fraudulent information about deposit accounts, even after identifying them as fraudulent. • TD Bank did not have sufficient processes to investigate and resolve consumer disputes, often failing to conduct proper investigations. 🔍 Why is this important? 🔍 • This is the CFPB's second enforcement action against TD Bank. In 2020, the CFPB ordered the bank to pay $97 million in restitution to 1.42 million consumers and $25 million penalty for illegal overdraft practices. • These findings and fines are another example of the regulatory scrutiny banks face related to their operational practices, consumer data reporting, internal controls, and compliance processes. • When banks fail to meet regulatory requirements in these areas, they face similar enforcement actions and fines. • Banks with multiple enforcement actions signal to the regulators that there may be additional internal practices warranting investigation and enforcement. 👉🏻 Stay informed on the latest regulatory news in financial services and learn how iKinetiq helps banks avoid enforcement actions. Check out our website: https://hubs.ly/Q02PwTgL0 #finserv #CFPB #regfines #regenforcement #compliancerisk #iKinetiq

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This budgeting and strat planning season, it's important to know what your future consumers are learning about #money, if you want to keep offering them #financial #products ... staying plugged into the future of money - even/especially for #banks and #creditunions - requires educational, technical, and operational action TODAY. The team at DaLand LLC is standing by to help bridge #TradFi to #DeFi; so your future business can keep offering savings accounts to savvy 'kids!' https://lnkd.in/edpyf9fT #dollar #inflation #bitcoin #btc #savings #economy

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🤔 ❓ What is larger in the US? Credit card debt or home equity? 🏡 Home equity is by far larger, 30x! 💰 📈 The largest source of wealth in America is homeownership. HELOCs are blowing up right now. A few quick stats... - Home equity is at record highs, $30 Trillion - Homeowners sit on an average of $193K in available equity per household - Homeowners tend to get a new loan every 7-10 years 4 of 5 homeowners will get their HELOC from someone other than their original lender. ⚔ The great home equity battle is on! I hope you're well equipped for the fight.

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Without community banks, Main Street USA collapses. At CollateralEdge, we know that commercial lending at community banks is not just a service—it's a cornerstone. Supporting local businesses is at the heart of what you do and commercial lending fuels the growth and prosperity of our communities. 🌟 We understand the challenges that come with commercial lending. The need to drive portfolio growth, while ensuring regulatory compliance AND preserving credit quality (nobody wants to see their credit officer have a stroke.) But these challenges are also opportunities to demonstrate your commitment to the success of your customers and your bank. As a dedicated partner to community banks, CollateralEdge recognizes the crucial role that commercial lending plays in your operations. Our mission is to support you in navigating these complexities with tailored solutions designed to help you win more C&I loans and deposits, while preserving your credit quality. Together, we can continue to empower local businesses, foster economic development, and build stronger communities. Let’s tackle these challenges head-on, turn them into opportunities for success. 🚀 Reach out to us CollateralEdge or shoot me a message to learn more! #CommunityBanking #CommercialLending #LocalBusiness #EconomicGrowth #solutions #CollateralEdge #mainstreet

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We meet weekly with businesses that are leveraging legacy technology to run their business. This is negatively impacting customer and employee experience, not to mention the risk of unsupported platforms and software. We see a stark contrast between organizations that are innovating and those that are not. ChoiceOne Bank is one of those organizations that are innovating and breaking an industry mold. I can't emphasize enough the importance of establishing a roadmap and a plan to position your organization for the future. Be nimble while providing an exceptional employee and customer experience!

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Fintech lenders provide a CX that is enviable. At the core of this is the digitization of process, the use of alternative and open banking data, and the removal of friction from lending -- apply in a minute, get your loan in hours, no fuss. Most lenders we speak with see these technologies as table stakes for doing business in 2024. We're pleased to help so many lenders improve the customer experience and win back lost business! #CX #finance #consumers

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Financial institutions are struggling to meet Gen Z where it is, with products, experiences, and messaging that resonate with the younger set. That can change if FIs can think more creatively around data, personalization, inter-generational marketing, and other acquisition strategies. Mahesh Raghavan, Associate Managing Director of Strategy at Publicis Sapient, shared some strategies for financial firms, at the Tearsheet Gen Z Symposium held recently in NYC, aiming to develop services and products that resonate effectively with the Zoomer demographic. Raghavan highlighted five key strategies that fewer fintech companies like Greenlight are effectively using to engage with the Gen Z demographic, which traditional firms are not fully leveraging. Listen to the full discussion: https://lnkd.in/dcg8stE5 #genz #financialservices #untappedstrategies

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What a week! In the last week, Lenders Cooperative has 7 new customers – five #banks and two #creditunions.   Use cases:   Credit Union wants to launch an #SBA program but doesn’t have the technology nor expertise to drive volume. Lenders Cooperative’s outsourced underwriting team and powerful #LOS was chosen after a competitive review.     Credit Union wants to launch a small business lending, automate their CRE lending activity, and launch SBA later in 2025. Our outsourced underwriting teams and LOS will give them a time to market advantage.   A bank who is a top 25 SBA lender will use Lenders Cooperative’s LOS to launch a small 7(a) lending program. They have pent-up demand for these loans and needed a solution to automate and reduce friction in the application and back office processing.     A $4b bank is using our SBA LSP team and LOS to deliver SBA 7(a) loans to their customers. The other three banks are using us across a variety of business needs – outsourced underwriting and our LOS to reduce friction for borrowers and back office.   Sales is a team sport. Incredible to have a fantastic team to work with. The expertise we have around commercial, business lending, and SBA is incredible.  Our development team keeps innovating on a monthly basis.   Our momentum just continues to build. What a great week, and grateful for the trust these folks are placing in our team! #lending #loanoriginationsystems

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Richland, Washington-based Gesa Credit Union plans to acquire Centralia, Washington-based @Security State Bank, the institutions announced Thursday in a press release. The deal, expected to be completed next year, continues the 2024 trend of credit unions buying community banks based in Washington. The $5.5 billion-asset Gesa CU becomes the fourth credit union to announce the acquisition of a Washington bank in 2024. Earlier this year, Harborstone Credit Union said it will acquire Burlington-based SaviBank, Sound Credit Union said it plans to acquire Olympia-based Washington Business Bank and Renton-based First Financial Northwest Bank is being bought by Alaska USA. With 10 whole-bank acquisitions struck by credit unions so far, 2024 is on pace to shatter the record 16 credit union-bank deals announced in 2022. Eleven credit union-bank tie ups were reached last year. The purchase price was not disclosed, but at more than $606 million in assets, Security State is one of the largest banks ever acquired by a credit union. Jeff Cardone, a partner at Luse Gorman, PC who served as legal counsel to Gesa Credit Union in the deal, told Banking Dive the biggest difference driving CU-bank deals in 2024 is that – given bank stock values, the interest rate environment and regulatory challenges – there are fewer bank buyers and, as a result, credit unions have filled the gap. “And the reason banks are larger [in 2024] is two-fold,” Cardone said. “Credit unions are the only realistic buyers that could pay cash and absorb the bank’s balance sheet from a purchase accounting standpoint, and the geography for these deals – [primarily] the Pacific Northwest and Florida – have larger bank targets than other market areas, such as the Midwest, which is comprised of a significant number of small community banks.” Gesa earned $10.8 million in the first quarter of 2024, a 21% decrease compared with a year earlier, according to call report data from the NCUA.

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So this is an interesting announcement by the Federal Housing Finance Agency regarding changes to the GSEs' Flex Modification programs. I think one of the biggest lessons learned as a result of 2008 is that when it comes to trying to help borrowers, you really need to get out in front of the issue in order to have an impact that prevents foreclosure and the ripple effect it has on the rest of the market. When the CARES Act came about during the Trump Administration, one of the things I told people is that the Federal Government has made it really clear that they don't want widespread foreclosures to happen again - and while there were a lot of other unintended consequences, the goal was achieved. Since the CARES Act expired, the Biden Administration has clearly signaled that they like the idea of avoiding as many foreclosures as possible. This latest announcement continues to lean into this. Three things to consider: 1) When it comes to mortgages, there is an increasing incentive to be in a conventional loan that is securitized by the GSEs or is Federally insured. For lenders that portfolio loans, perhaps it's time to consider whether you're willing to step up to the plate in a similar manner, or whether your borrowers may be better off with a non-portfolio execution. 2) Regardless of who wins the election, I wouldn't expect to see this policy change. Obviously the Biden Administration isn't going to undo something they just did, but if we see the FHFA as having to reconcile itself with Trump's populist approach, it's likely to stay in place as well. Obviously Mark Calabria is a contender to return as Director of the FHFA in a Trump Administration 2.0, but I wouldn't expect him to necessarily change this because of a misalignment with his own ideological leanings. 3) On the surface, this hurts the supply issue - but maybe it doesn't. Why? Because an "involuntary prepayment" (to use a euphemism) results in a home becoming available for a new homeowner. We're basically going to prevent homes from becoming available due to borrower hardship. But in a way, this is also good for supply - in a free market economy, the cure for high prices turns out to be...high prices. What we really need more of are new homes, and the rehabilitation of older homes to bring them up to modern standards. These are things that take a big hit during times of economic turmoil and collapsing home prices. If we are able to prevent a disorderly flood of homes entering the market, there's better price stability. That price stability is critical to helping builders have enough confidence to continue to build, and to keep them from becoming casualties of a downturn. Foreclosing your way to lower home prices has a lot of negative economic impact, as opposed to building your way to a more adequate supply of homes. https://lnkd.in/ghN4TxFD

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“We’ll pull share out of smaller banks who won’t have the technology to be able to take advantage of open banks,” said CEO of The PNC Financial Services Group William Demchak recently. The #creditunion conundrum: should they risk waiting on the sidelines, watching larger institutions that comply early take advantage of the new Consumer Financial Protection Bureau 1033 regulation, or should they reshuffle priorities now to adopt 1033—a complex and costly undertaking? One thing is certain: assuming there is ample time to comply is not an option. Credit unions should start now by defining their open banking strategy—or rather, determining how open banking fits within their broader strategy—and the role they want to play. 👀 Read this blog post from OpenFinity with input from CoVantage Credit Union's CIO Sean VanHandel and America's Credit Unions' s Director of Innovation and Technology Andrew Morris 👇 👉 Join this free virtual conference from OpenFinity to learn how to comply with #DoddFrank1033 and hear what CIOs from credit unions have to say about it: https://lnkd.in/eVEMkcCp #openbanking #openfinance CoVantage Credit Union America's Credit Unions

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Will local #communitybanking and #creditunion leaders promote the rights to private property and personal wealth? Or, will consumers be left without any advocates or partners in the possession and preservation of modern digital #money, especially at a time when it's needed to protect the fruits of their labor from the abuses and schemes of centralized bankers and corporatists in Congress? #bitcoin #btc #inflation #dollar #fbi #intimidation #innovation

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The FFIEC released the 2024 Census flat file, which incorporates the boundary changes from OMB Bulletin 23-01. Be sure to follow ComplianceTech on Linkedin to find out when the new data are incorporate into LendingPatterns™, an an easy-to-use HMDA analysis solution with the power and flexibility to generate custom market analysis reports and identify fair lending risks related to underwriting, pricing, redlining, and steering, compared to peers.

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