Credit Union Conversations

On today’s episode of Credit Union Conversations, Mark is joined by Derek Ezovski. Derek has considerable experience in environmental and property risk management. Spending his entire career helping companies create best practices, Derek shares with us about his business, ORMS, hot-button topics and information on lending and environmental risks to consider. Tune in to learn more!

IN THIS EPISODE:

• [04:00] Derek talks about his background working in environmental insurance
• [10:00] Being aware of the environmental risk of lending
• [14:00] Derek talks about SBA Environmental Policy two-tiered program
• [22:00] Hot button topics in Environmental business

KEY TAKEAWAYS: 

• Environmental risk assessment is the ‘necessary evil’
• It’s better to get in front of an environmental issue, when it’s easier to manage
• If you take on a loan, you should know the risk that comes with it

RESOURCE LINKS

markritter.com

BIO:  

Derek Ezovski has extensive experience in environmental and property risk management. Derek has spent his entire professional career helping companies create best practices to manage their risks via engineering solutions, insurance, and information needs. He has a very unique background focused on business development to the financial services community which is why ORMS was founded.

Joe Hyatt, President of DFTC, Inc., has been involved in credit unions for over 15 years assisting with many aspects of risk management in commercial lending. On this episode, Joe speaks with Mark about the good and bad of today's lending marketplace as well as challenges faced as a small business owner and credit union vendor.

IN THIS EPISODE:

• [03:00] Joe talks about his background an more about DFTC 
• [09:00] Mark and Joe discuss worries they have in today’s lending market
• [15:00] The positives in today’s lending market
• [23:00] How the credit union industry has grown and changed in the 20 years

KEY TAKEAWAYS: 

• Credit unions have seen unprecedented growth in the past few years
• The credit union industry has really grown and mature over the last twenty years and have gained a lot of specialization 

RESOURCE LINKS

www.devftc.com

BIO:  

Joe Hyatt is the President of DFTC, Inc. He has been involved in credit unions for over 15 years assisting them will all aspects of risk management in commercial lending. You can connect with Joe directly through www.devftc.com.

In today’s episode of Credit Union Conversation, host Mark Ritter talks with Small Business Lender, Tammy Baker, of Nu Direction Lending. Tammy and Mark start the show by reviewing the new cap rules for credit union business lending. They also talk about best practices in participation lending, small business loans, and Tammy gives an overview of lending with Nu Direction Lending. 

IN THIS EPISODE:

• [01:30] Tammy’s background in banking and working with Mark
• [03:30] Mark discusses cap regulation rules for credit union business lending
• [10:00] Best practices for processing a potential original loan
• [16:00] Mark and Tammy discuss Small Business Loans
• [25:00] Tammy shares a success story for a borrower she’s worked with

KEY TAKEAWAYS: 

• Technology can make the lending process easier.
• Building relationships and trust is key to working with your borrowers.
• Credit Unions should foster a relationship with their community members so they know they can use them for more than just real estate loans, but also car and small business loans.

RESOURCE LINKS

markritter.com

BIO:  

Tammy Baker leads Nu Direction Lending which provides small business loans nationwide through our credit union partners. Previous to joining Nu Direction Lending, Tammy led the participation and servicing program for a large credit union.

On this episode of Credit Union Conversations your host, Mark Ritter, dives into the topic of Small Business Loans. Join him as he breaks this topic down with Will McClain and Chuck Evans, two veterans of Small Business lending. Tune in as they discuss topics such as different methods of working with clients, helping people set goals for the businesses, SBA incentives, and more! 

IN THIS EPISODE:

• [02:00] Will and Chuck explain their experience in Small Business Lending
• [08:00] Providing plans and strategies including incentives for borrowers
• [12:30] Outsourcing help for SBA lending
• [16:30] Banking as a service and being confident in your institution
• [19:00] SBA programs post pandemic

KEY TAKEAWAYS: 

• Providing borrowers with goals and strategies can help them with their small business loans
• SBA Lenders should outsource help as needed to stay efficient
• SBA Programs are becoming popular and more available, especially post PPP loans

RESOURCE LINKS

www.markritter.com

BIO:  

​​Will McClain is a veteran of SBA lending and is the leader of the country's largest SBA lender service provider. 

Chuck Evans is the Executive Vice President of Windsor Advantage. Chuck is a veteran of SBA and other mission-based lending companies.

The most successful credit unions make long term commitments to be part of their community in helping small businesses succeed. Erie Federal Credit Union exemplifies this effort. In this episode, Mark talks with Nathan Crouch and Katrina Drake to pick their brain on how they manage close community relationships, have a strong work-life balance, and succeed at their credit union.

IN THIS EPISODE: 

• [02:37] Katrina and Nate share some background on the Erie marketplace 
• [04:35] Nathan and Katrina share about their banking experience
• [08:20] What’s it like being part of the community and how that feeds through to your job
• [12:21] How to negotiate with borrowers that you or a colleague has a close relationship with 
• [15:07] The importance of staying connected to business members rather than just making a loan
• [19:12[ How to deal with a difficult or forgetful borrower in keeping up with after the loan 
• [22:40] How to keep work, community and personal life separate in a smaller market setting

KEY TAKEAWAYS:

• Erie Credit Union connects to their communities and serves at that ground level by helping people rebuild their personal credit. They also have employees go to local schools to teach financial literacy. 
• The key to developing a healthy relationship with members is that give and take and needs to be centered around proper expectations. For instance, you may refer to a new loan as going to be expensive as a way to set expectations up front. 
• Stay close with your borrowers after the fact by requesting financial information, tracking insurance, and even checking property taxes. This is how to keep a heartbeat on your borrowers and it helps mitigate any potential issues down the road with them. 

RESOURCE LINKS:

Partner with MBFS or Nu Direction Lending

Are you a small business owner or real estate investor looking for financing?

BIO: 

Nathan Crouch and Katrina Drake are longtime Erie residents who are dedicated to making sure their neighbors receive the financing they need through Erie Federal Credit Union.

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

Mark Ritter Website

Mark Ritter on LinkedIn

I have a great business idea....This is a no brainer....Kristina Paulson has heard and seen it all when it comes to loan requests. In today's episode, Mark Ritter and Kristina will uncover the secret sauce on what actually goes on behind the scenes before a final decision is made on financing requests. Business owners and real estate investors will learn the tricks of the trade that will help them land the financing they need.

IN THIS EPISODE: 

• [02:38] What is the role of credit analysis and what happens after a loan request is submitted 
• [05:11] Common missing pieces that cause delays in the loan approval process 
• [07:45] Common red flags that credit analysts look for 
• [10:04] Two sides of credit process: Taking a closer look at qualitative data and how technology helps improve the process 
• [14:20] How COVID has changed the credit analysis process 
• [19:35] The biggest pain point for borrowers and lenders
• 
  

KEY TAKEAWAYS:

• One of the most common missing pieces that cause delays for borrowers are K-1s. This is important because it shows how an individual has given money to their various businesses or received money from their various businesses.
• Credit analysts typically look for red flags in areas like: credit history, lending policy. tax liens, bankruptcies, or additional mortgages. 
• Qualitative data about a borrower is just as important as quantitative data. Analysts take time to look at the borrower’s background and business or industry experience.

RESOURCE LINKS:

Partner with MBFS or Nu Direction Lending

Are you a small business owner or real estate investor looking for financing?

BIO: 

Kristina Paulson leads the credit analysis at MBFS including new and existing loans. Prior to joining MBFS, Kristina helped manage commercial lending credits for a regional bank in the Philadelphia region.

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

Mark Ritter Website

Mark Ritter on LinkedIn

On today’s episode, Mark is joined by longtime friend and colleague, Fred Ryerse of Patriot FCU. Fred has been in the financial services world for 42 years now and offers insight on current trends by looking back at interest rates during the 1980s. Fred and Mark catch up on the old days as well as have a candid conversation about what is in store for 2022. Listen in as they discuss what credit unions should be thinking about today and pick up some pointers for your team.

IN THIS EPISODE: 

• [01:19] Fred shares about his work in financial services 
• [02:23] What did interest rates look like back in the 1980s
• [06:35] What lessons can we learn from the 80s
• [09:36] How to respond to rising interest rate environment
• [13:16] How will this affect delinquency numbers and what does the economy look like as a whole right now
• [17:33] How to respond when a borrower requests a longer term rate
• [22:57] What will 2022 look like for credit unions 
• [25:52] Fred shares a client success story 
• 
  

KEY TAKEAWAYS:

• It’s important not to panic during financial uncertain times like this. We are not in a recession yet and we may not ever get there despite everything that's going on. However, the risk is definitely higher now than it was three months ago. 
• What can credit unions do during this time? Be more diligent about staying close to your borrowers and understanding their cash flow concerns. In some cases, you're going to have borrowers that have increasing revenues because of inflation. Pay attention to the ratios and the fact that staying exceedingly close to borrowers and understanding the risks.
• Some customers may request a longer term rate because they are fearful of increasing rates. But don’t lose sight of the credit union’s need to be profitable at any point on the curve. Create your pricing model based on the cost of funds, what it takes to put tenure money out there, and the inevitable riskI due to the interest rates. This may create a premium price and option but one that still protects the credit union as well. 

RESOURCE LINKS:

Partner with MBFS or Nu Direction Lending

Are you a small business owner or real estate investor looking for financing?

BIO: 

Fred Ryerse is the Chief Lending Officer at Patriot Federal Credit Union, an almost billion credit union serving Chambersburg, PA, Hagerstown and Frederick, MD and Martinsburg, WV. He has had a 42 year career in financial services, with the last 25 being with credit unions. He is an advanced amateur photographer, and he and his wife love to travel, including Italy next week!

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

Mark Ritter Website

Mark Ritter on LinkedIn

Everyone searches for the unicorn to walk through your door. It is the perfect prospect with great credit and collateral who is just begging for someone new. Does it happen? Not really. On today’s episode of Credit Union Conversations, Mark is joined by Tom Halliday to talk through meeting a new member prospect for the first time and how to separate fact from fiction while balancing the needs of everyone. 

IN THIS EPISODE: 

• [02:57] Ways to build a circle of influence and increase your customer base
• [07:16] Changes in the sales process post-pandemic and the typical game plan for a first meeting with a with potential client
• [12:36] How to help rate shoppers see the total package instead of focusing on getting the lowest rate
• [14:50] How to set realistic expectations with borrowers and overcome challenges with non-cooperative customers
• [19:01] Follow up steps after the first meeting and how the process has shifted from paper to digital transactions
• [23:05] How to gain a better understanding of the borrower

KEY TAKEAWAYS:

• Build up your circle of influence by 1) Connecting with providers like attorneys, title companies and insurance providers, 2) Informing your current customer base of commercial lending services, 3) and connecting with commercial brokers. 
• The post-pandemic vetting process for investment real estate tenants now looks more closely at financial history and current financial standing. This is to protect both the borrower’s interest and the credit unions. 
• If a customer is only interested in a low rate, communicate the importance of looking at the total package like fees, costs, interests, collateral, terms, prepayment penalties. When you dig deeper, the cheapest rate isn’t always the cheapest option in the long run.

LINKS:

Partner with MBFS or Nu Direction Lending

Are you a small business owner or real estate investor looking for financing?

BIO: 

Tom Halliday is a veteran of MBFS that leads the team of Relationship Managers to drive loans to credit unions. Prior to MBFS, Tom assisted small businesses throughout Delaware and Maryland get the financing they needed through various banks.

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

Mark Ritter Website

Mark Ritter on LinkedIn

You can’t move forward without first looking back! In today’s Credit Union Conversations, Mark speaks with Jeff Lyons, COO of MBFS, about what happened in the credit union industry in 2021. Mark and Jeff discuss the most surprising statistics and major changes to the business lending portfolio. It’s no surprise that COVID is still a topic of discussion and Mark and Jeff talk about how it continues to impact staffing and rising interest rates. They share their thoughts on how credit unions can thrive by focusing on repeat customers and connecting with more small businesses. 

IN THIS EPISODE:

• [00:52] Jeff Lyons Introduction
• [02:11] Latest in the credit union industry
• [05:19] Business lending portfolio
• [07:44] Major headlines from 2021
• [12:07] Delinquency and interest rates
• [18:56] Operating expenses and pricing strategy
• [27:41] Client success story

KEY TAKEAWAYS:

• One of the credit union’s most surprising statistics from 2021 was the amount of business loans that it made. There were 60,000, which is really strong for the industry.
• The credit union industry is shifting towards bigger loans which also means bigger swings in terms of delinquency. It's a double-edged sword. Bigger loans and bigger dollars means that charge offs will be larger too.
• The credit union industry can't compete against the big guys' interest rates. The key to thriving is to connect with small businesses, take care of your good customers and take care of repeat customers. Be diligent and keep an ear on the ground to see where rates are going.
• It's going to be important for credit unions to look more closely at a business' tax returns and financials because the labor supplies and cost of goods could be nothing like what it is today.

LINKS:

markritter.com



BIO:

Jeff Lyons is the COO of MBFS and leads the sales and credit divisions. Jeff joined MBFS after a long career leading a business lending department at a credit union as well as a tenure as a successful small business owner.

Welcome to the kickoff for Credit Union Conversations. Mark Ritter, MBFS & Nu Direction Lending CEO, has been a regular speaker on the credit union circuit for the past decade. Mark now brings his insights to the public so you can listen on your terms. Learn more about Credit Union Conversations and our plan to bring our opinions on the latest industry news to everyone on a regular basis.

IN THIS EPISODE:

• [00:30] Background of Mark Ritter
• [01:45] About MBFS
• [03:12] Background on Credit Union Conversations
• [06:46] What to expect from Credit Union Conversations



KEY TAKEAWAYS:

• Nu Direction Lending is a small business lender. It’s a credit union friendly version of the online business loan that’s a fast and effective option for small businesses.
• There is a Zoom and Webinar fatigue. We want to give people the education and information we typically provide through webinars in a more flexible and on demand format.
• Credit Union Conversations won’t always present neutral, boring answers. We want it to be opinionated. We'll give you a little bit of controversial opinions.
• Credit Union Conversations will give you a mix of current events and educational topics or updates on what's going on at MBFS or our industry or the marketplace.

LINKS:

markritter.com

BIO:

Mark Ritter is the CEO of MBFS and an expert in credit unions and business lending. His primary role at MBFS is overseeing the strategy of helping credit unions assist members with business needs and consulting with credit unions on planning the delivery of services to their membership.

In 2002, Mark started Members 1st Federal Credit Union’s business lending program as “one person and a desk” with no policies, products, staff, systems, or business members. That program grew to be one of the top ten in the nation.

In 2012, he took on the challenge of being the CEO of a business lending CUSO. Mark was the fifth CEO in five years for the organization, which lost money every month of its existence. Since joining MBFS, Mark increased the number of credit unions the CUSO services by over 8x, grew the revenue by 10x, and ensured positive cash flow every full year he’s been at the CUSO. More importantly, MBFS has helped countless credit union members gain the financing they need for business and investment needs.