Credit Union Conversations

Lance Teinert and Mark Ritter get together to talk about the current state of education and student lending.  Today's marketplace is interwoven with the political landscape, so Lance weighs in on how today's news headlines impact his business, CURevl. 

IN THIS EPISODE:

• [3:02] Lance describes how he became involved in working with credit unions and weathering the storm we faced in 2018 and, subsequently, Covid
• [10:26] Lance explains how he derived the name for his QSO
• [15:30] Discussion on lack of planning for college education
• [19:55] Student lending programs taking a beating in the media
• [25:33] Confusion surrounding forgiveness of a federal versus private loan
• [28:22] Lane describes how his marketing team provides financial aid offices and college fairs with information regarding the credit union available to make loans

KEY TAKEAWAYS: 

• Financial planning requires two things. Make a plan and then plan for the disaster
• Educational finance planning can be accomplished through your credit union
• Student loan forgiveness does not apply to private loans

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Lance Teinert - Email

BIOGRAPHY: 

Lance Teinert celebrates a career of over 30 years in Education Finance, Financial Technology and Capital Markets by approaching life and business from an entrepreneurial perspective. Establishing and maintaining an ideal work-life balance is easy when you enjoy life both inside and outside of work.

Lance is currently the CEO of CURevl, a CUSO that is dedicated to connecting families with credit unions through education finance. Our unique approach to the business intertwines full service, capital markets support and software as a service, enabling credit unions to meet the needs of their members by partnering with experts that get the job done efficiently and effectively.

Alan Ropes and Mark Ritter discuss information security, an essential topic for our listeners. Mark admits he is not a detail guy by nature, but fortunately, VyFi is a Credit Union Service Organization, and they do a great job keeping members’ information private. Tune in for valuable information on keeping your data secure.

IN THIS EPISODE:

• [2:06] Alan shares the history of VyFi and how they partner with credit unions
• [6:58] Alan describes what is involved in protecting members’ information
• [12:14] Alan advises what a credit union should demand from third-party operators to safeguard data
• [15:41] Discussion of how data breaches can occur, and Alan gives examples
• [20:26] Discussion on how to determine the risk a credit union should take, and Alan explains how his job is to help a credit union and not be an adversary
• [26:56] Alan explains what you should do immediately if you have a data breach

KEY TAKEAWAYS: 

• Information security comes in many forms. VyFi dives deep into where you store your data, that you have the controls in place, are practicing them, and that they work
• Good firewalls, perimeter security and passwords are critical. Employees must also follow the rules, and the right policies and procedures must be in place. If there is a breach, handle it immediately
• VyFi operates as the pre-exam before the NCUA gets involved

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Alan Ropes - Email

VyFi - Website

BIOGRAPHY: 

Alan Ropes is currently the CEO of VyFi, LLC. VYFI is a Credit Union Service Organization (CUSO) with 100% ownership by Florida-based Launch Credit Union. We work to enable Credit Unions to meet their NCUA and state regulatory mandates in Information Security, Governance and Compliance.

MBFS and Miri have had an amazing journey together, and I’m thrilled to chat with her today. Tune in as she shares her extensive expertise in marketing and brand development. Miri also offers a unique take on AI and social media platforms. I hope you enjoy this episode of Credit Union Conversations.

IN THIS EPISODE:

• [2:22] Miri describes how Cowe Communications has evolved over the past nine years
• [5:18] How do you tell if you are selecting the correct marketing firm to assist you in business, and what questions to ask
• [10:01] How AI will be a game changer in the industry
• [16:06] Miri advises when non-creatives throw their personal preferences on overall business strategies without knowing what media their target audience consumes
• [20:09] Mark asks what media that was effective 10 to 15 years ago isn’t working and the benefit of the LinkedIn platform if done properly
• [31:15] Discussion about TikTok

KEY TAKEAWAYS: 

• If someone solicits your business, ask them about their experience in your industry
• A marketing firm’s goals should align with your goals and vision; if they haven’t asked about your goals, this is not the company for you
• AI is an excellent tool for some applications; however, it lacks the personal relationship aspect for long-term ventures. It works well for suggesting ideas, but it takes a human to craft the best product

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Miri Rossitto - LinkedIn

Miri Rossitto - Email

Cowe - Website

BIOGRAPHY:

Miri Rossitto is the current CEO of Cowe Communications, a business and brand development firm specializing in strategic communications. Headquartered in Calabasas, California, Cowe's dynamic in-house team partners with companies and organizations of all sizes to help make them more efficient, wildly memorable, and significantly successful.

What are your borrowers thinking? What do they want to make you their preferred lender? Brandon Cobb joins Mark today to talk about what it is like to be a borrower and what credit unions can do to make real estate investors long-term and happy members. 

IN THIS EPISODE:

• [2:26] Brandon shares his professional background, taking him to HBG Capital
• [7:27] Brandon gives his impression of what he thought a credit union was before he spoke to Mark
• [11:31] Interest rates have affected the real estate market, particularly with commercial property 
• [15:29] Brandon speaks about the Nashville market
• [17:36] The cost of goods has stabilized somewhat over what it was three years ago; however, the situation with cargo ships has affected the arrival of goods
• [20:19] Brandon talks about the supply and demand for entry-level properties, and he suggests following the money
• [27:30] Brandon states what a suitable lender looks like to him
• [31:56] How to contact Brandon

KEY TAKEAWAYS: 

• Many people believe that you have to be a member of a union to use the services of a credit union. That is untrue.
• Commercial property has decreased in value because the costs of upkeep and payment are higher. Many commercial properties are not occupied.
• When a market is affected negatively, it presents an opportunity to buy low.

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

HBG Capital Website

BIOGRAPHY:

Brandon Cobb is the CEO and founder of HBG Capital in Nashville, TN. HBG Capital is a vertically integrated real estate investment firm providing investors superior risk-adjusted returns built to be transparent for the investor and designed to be insulated against market volatility, secured by entry-level single-family residential real estate in Middle TN & value-add Class B & C multifamily in the southeast.

What has changed since MBFS started working with Weidenhammer? Basically everything. Jody and Mark make sense of the coming AI revolution and what we should be worried about these days with security.

IN THIS EPISODE:

• [2:00] Jody shares his background and professional career path
• [6:06] Jody explains how Weidenhammer is different than other tech firms and the evolution of AI
• [11:46] Discussion of the limitations and accuracy of Chat GPT and whether systems like this will remain free to the user
• [19:10] Good uses of AI, security, and what causes security breaches
• [26:28] How working from home has impacted the security world
• [28:22] What does Jody see happening around AI in the next five years

KEY TAKEAWAYS: 

• Although the general public believes that AI and systems like Chat GPT are new creations, they have been running in the background for a long time.
• AI is an extremely expensive process, much more than a typical search engine, and companies will need to devise a way to recover that activity. 
• Machine learning will make jobs more manageable in the future because it will absorb the mundane aspects of the job, giving more time for creative thinking. 

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Weidenhammer Website

Jody Pillard LinkedIn

BIOGRAPHY:

Jody Pillard is the Chief Revenue Officer at Weidenhammer, a longtime MBFS partner. He likes to say that he helps IT folks have less stress, more time, and more recognition for their hard work. 

Mark and Bob talk about the evolution of credit unions' relationship with auto dealers and indirect financing, what the pandemic was like, and what it is like to finance vehicles these days.

IN THIS EPISODE:

• [0:51] Mark describes why he needed to purchase his first pickup truck
• [2:24] Bob shares his professional background 
• [4:08] Discussion about liquidity and interest rates
• [8:13] Bob discusses lending during the pandemic and how the value of automobiles has risen
• [11:18] The value of a Tesla and the impact of the battery cost and which are the better-selling vehicles
• [17:47] Discussion of the inventory of new vehicles and how online shopping has impacted the credit union business in terms of providing loans
• [24:05] Bob talks about the due diligence needed to work with a  dealership

KEY TAKEAWAYS: 

• During the pandemic, parts were difficult to source for new cars, and dealers had low inventory. They realized that they didn’t need to carry such a large inventory because people would wait for a car they had ordered.
• The impact of purchasing batteries for cars like a Tesla hasn’t been felt yet. It will be interesting to see whether a vehicle with a new battery will have a higher value.
• Online shopping has impacted the car lending business. The finance companies show up on a drop-down menu, and credit unions won’t have a significant space to be seen.

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Keystone Lending Alliance Website

BIOGRAPHY: Bob Brant

For the past 15+ years, Bob Brant has been the CEO of Keystone Lending Alliance. KLA is a western PA-based CUSO specializing in facilitating auto financing for members throughout the northeast United States

Nolan Bradbury joins Mark today to talk about the relationship between lender, accountant, and member. Also, what is the best way to manage debt load? What does the conversation look like between accountant and business owner when they talk about lenders? Nolan and Mark look under the covers to talk about what lenders should know.

IN THIS EPISODE:

• [1:52] Nolan shares his professional journey and how his firm is dedicated to helping small business owners succeed 
• [5:16] Nolan gives his perspective on carrying debt as a small business owner, and he discusses lines of credits
• [9:55] Nolan advises what people should be looking for in a financial institution based on their needs and the support they are seeking
• [15:19] Discussion of the requirements and covenants of the loan documents and why they should be read and understood
• [19:41] Nolan describes his favorite clients
• [23:15] Nolan outlines what he wishes lenders knew and would do differently 
• [27:42] Nolan shares his contact information

KEY TAKEAWAYS: 

• Carrying debt as a business owner is a cost-effective way to scale a business without giving up control or equity. Being smart about debt is critical.
• Getting a line of credit is easier when you don’t need it, but be wise in how you use it. 
• Not all lenders are the same. Some predatory lenders will take advantage of the relationship or the small business owner.

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Bradfield Co. - Website

Nolan Bradbury - LinkedIn

BIOGRAPHY: Nolan Bradbury

Nolan Bradbury is the owner of Bradfield Accounting in Washington state. He consults with business owners nationwide on how to maximize their business results and manage their finances.

What's the value? Noelle McDonald can help. The commercial real estate market is upside down today. Mark and Noelle talk about the current state of the appraisal marketplace and what lenders should be on the lookout for now and in the future.

IN THIS EPISODE:

• [1:16] Noelle shares her background and describes what Lender Consulting Services does
• [6:49] The appraisal industry is aging people out, and new people are not coming into the field because becoming an appraiser is challenging because of the requirements
• [12:42] Noelle discusses aspects of the process that people are not aware of
• [16:37] Noelle talks about how she deals with the emotions of the appraisal and how appraisers are coping with the uncertain landscape of commercial appraisals 
• [23:10] Noelle is wary of new technology, where you can have valuations done cheaper, faster, and quicker on the fly.

KEY TAKEAWAYS: 

• Often, there needs to be more communication between the appraiser and the entity that will process the loan. People need to understand that once the appraisal is done, it is done.
• Appraisers are being aged out, and the training involved in becoming an appraiser is vigorous and much more complicated than in the past. 
• Appraising commercial property has changed since COVID. There are so many empty office spaces that values are bound to be affected. Appraisers are catching up on the data they need to do their job. Interest rates have also changed the landscape. It all affects the appraisal. 

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Lender Services Website

Noelle McDonald  LinkedIn

BIOGRAPHY: Noelle McDonald

Noelle McDonald is the VP of Valuation Services for Lender Consulting Services. With over twenty years of experience, she leads one of the leading lender support companies in the country through a variety of commercial appraisal requests.

Mark Treichel and Mark Ritter talk about their respective backgrounds and what it is like on both sides of the examination process. They also talk about the current state of the NCUA and staffing levels. When should you take on examiners and when to back off? Mark and Mark talk about different strategies.

IN THIS EPISODE:

• [0:52] Mark Ritter introduces his guest and the topic of NCUA Examinations
• [1:55] Mark Treichel shares his background story
• [5:35] Mark Ritter shares his background story
• [7:50] Mark Treichel discusses how the industry has changed over 34 years
• [9:24] Discussion of the NCUA board meeting on YouTube and what the board has planned for the future
• [14:04] Discussion of liquidity
• [16:52] Mark Treichel suggests that credit unions keep their examiner informed and build a working relationship 
• [19:50] Telltale signs of a flawed and incomplete loan paper documentation and discussion of small credit unions

KEY TAKEAWAYS: 

• Thirty-four years ago, who would have thought that your only choice was to go to a credit union or the ATM? Members can now apply for a loan without them physically entering a branch. There are fewer credit unions than there were back then, and there is an extensive use of third parties.
• Mark Treichel predicts that Chairman Harper will bring forth a rule that there will be a regulation on succession planning, which would only impact federal charters.
• An Examiner can tell if the credit union has done their job by looking at the loan papers. They also can learn by reviewing the documents of loans that were denied and ones that were approved. 

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

Mark Treichel Website

Mark Treichel Linkedin

Mark Treichel Phone - 407-493-1180

BIOGRAPHY: Mark Treichel

After a 33-year career at NCUA, Mark Treichel served as Executive Director, Regional Director, Director of Special Actions, Supervisory Examiner, and Principal Examiner. He knows how NCUA thinks, why they think it, and the examination process inside and out. Today, he runs a consultancy practice where he assists credit unions with the examination process.

Mark and Jeff discuss Jeff's background and the mission of River City FCU. Jeff explains the value of CDFI status that credit unions can access. Jeff and Mark have a lengthy discussion about the value of credit unions of all sizes and the purpose credit unions have in today's economy, along with ideas on how to maintain the number of credit unions in the United States.

IN THIS EPISODE:

• [0:48] Mark describes his business goals
• [2:53] Jeff shares his background and how his credit union serves the Hispanic community of San Antonio, TX
• [7:40] Jeff discusses the advantages of serving the Hispanic community
• [11:24] Members need to understand that a credit union that is insured by the NUCA is safe, and their money is protected 
• [12:59] Discussion on small credit unions and the importance they have in the marketplace for minority neighborhoods and how some larger credit unions have left the minority communities behind
• [20:55] Mark and Jeff discuss succession planning when a CEO retires
• [25:01] Jeff describes what it is like regarding companies approaching him who want to merge and what he would do to grow the number of small credit unions

KEY TAKEAWAYS: 

• River City FCU serves the Hispanic community in San Antonio, TX in many ways. One important service is to provide lending, which helps a person establish themselves in the United States and is also better for the economy because they don’t require government assistance.
• Credit unions need to adapt to the ethnic communities in their area by understanding the needs and goals of the people and offering services to meet those goals. One size does not fit all. 
• If a large credit union acquires a small credit union and closes its doors, it damages the entire premise of a credit union helping the community they are in. 

RESOURCE LINKS

Mark Ritter Website

Mark Ritter LinkedIn

River City Credit Union Website

Jeff Ivey’s Phone Number: 210-244-2545

BIOGRAPHY: 

Jeff Ivey is the current CEO of River City FCU in San Antonio, TX. River City is a CDFI-designated institution serving consumers since 1936. Jeff has also been a board member of Inclusive. Previous to his current position, Jeff helped credit unions with strategic planning and CDFI opportunities.