Credit union lending strategies take center stage as host Mark Ritter of Credit Union Conversations welcomes Erik Harwood from Sun East Federal Credit Union. Erik shares insights on navigating today's commercial lending landscape and adapting to the normalized liquidity management environment of 2025. The conversation explores innovative residential mortgage lending programs, including Sun East's pioneering 40-year fixed-rate mortgage programs for credit unions that address affordability challenges. Erik discusses loan portfolio growth tactics, pricing approaches in fluctuating interest rate environments, and the evolution of credit union lending strategies in competitive markets.

What You Will Learn in This Episode: 

✅ How credit union lending strategies adapt to normalized liquidity management conditions after pandemic-era extremes, including balancing inventory costs with loan portfolio growth targets and strategic borrowing decisions for sustainable lending operations.

✅ Innovative residential mortgage lending solutions like 40-year fixed-rate mortgage programs for credit unions and community heroes programs that provide affordability programs for first responders, teachers, and medical professionals while maintaining sound underwriting standards.

✅ Essential commercial lending approaches, including the three-door loan pricing strategies philosophy that empowers borrowers with choices while protecting yields, plus navigating business loan program caps.

✅ Why treasury management services development is critical for credit unions to expand beyond real estate lending into business and asset-based lending, and how to evaluate FinTech partnerships and third-party originators through rigorous vendor management diligence.

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TIMESTAMPS:  

00:00 Intro: Meet Erik Harwood from Sun East Federal Credit Union

03:30 The differences between community banks, large banks, and the local credit union, mainly focusing on commercial lending

11:06 Erik explains liquidity management challenges and discusses loan portfolio growth 

12:58 Discussion of loan pricing strategies using the "three door" philosophy, car loans and interest rates

18:18 Erik details their residential mortgage lending programs, including the 40-year fixed-rate mortgage programs for credit unions 

21:42 Discussion of business loan programs, treasury management services, business loan caps, and opportunities in real estate lending

KEY TAKEAWAYS:  

💰Credit union lending strategies are normalizing in 2025 after years of extreme liquidity management challenges, with institutions finding a balance between deposit costs and lending opportunities while utilizing borrowed funds strategically for loan portfolio growth.

💰Sun East's innovative 40-year fixed rate mortgage programs for credit unions priced at parity with 30-year terms provide $220-$250 monthly payment relief, helping borrowers overcome debt-to-income ratios barriers while maintaining substantial risk mitigation through minimum credit scores and maximum LTV requirements.

💰The interest rate environment remains unpredictable, with treasury bond yields not correlating to federal funds rate cuts as expected, requiring lenders to adapt loan pricing strategies based on cost of funds rather than traditional Fannie Mae floating rates.

ABOUT THE GUESTS:

Sun East Federal Credit Union

Erik Harwood - LinkedIn

RESOURCES MENTIONED: 

Mark Ritter - Website

Mark Ritter - LinkedIn

SEO KEYWORDS: 

Credit Union Conversations, Mark Ritter, MBFS, Credit Unions, CUSO, Credit Union Lending Strategies, Commercial Lending, Liquidity Management, Residential Mortgage Lending, 40-Year Fixed Rate Mortgage Programs For Credit Unions, Loan Portfolio Growth, Interest Rates, Affordability Programs, Asset-Based Lending, Real Estate Lending, Business Loan Programs