CU 2.0 Podcast Episode 93 Lee Miller Renofi on Smarter Home Improvement Loans

America's housing stock is old - often over 50 years of age in much of the nation and owners want, need, improvements to live in the home they want.

The problem: many buyers stretch to buy their home and they do not have that much equity built up, even after five or perhaps even ten years in the house. But now there are two more children, maybe a grandparent, added to the family and where does everybody sleep.


Historically, home improvement loans have ignored an obvious reality: many projects significantly increase the value of the home,

Sure, some do not - pools usually, saunas, a green house.

But add a bedroom,or a bathroom, or update a kitchen and that house is worth more money.

TV watchers know that from HGTV's long-running "Love It Or List It" where after every reno, the realtor tells how much more the house is worth. Similar happens on "Fixer Upper."

So why can't a loan be created around the probable higher value of a home post renovation?

Why not indeed. That's what the founders of Renofi asked and they now have created a fintech to help credit unions make loans based on that calculation.

In the process, Renofi has processes for calculating what value in fact a particular renovation will add in a specific market and also conducts due diligence on the contractor associated with the project.

Renofi already works with several credit unions - you will hear specifics in the podcast - and wants to hear from more.

Here's what Renofi tells credit unions about itself: "RenoFi is a turn-key, end-to-end growth channel. We help our partner Credit Unions grow their loan portfolio by delivering highly-qualified new members seeking home renovation loans that meet your institution's specific underwriting criteria."

Sound good?

Listen to the podcast to learn more specifics.

And check out Renofi's website.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto

Tags: CapiformSBAloanPPPsmall business

CU 2.0 Podcast Episode 92 Sahil Pankhaniya, A Start Up Credit Union at George Washington University

What will blow your mind as you listen to this podcast is how savvy and smart the guest is. That's Sahil Pankhaniya, a 20 year old student at George Washington University in Washington DC who is pursuing the launch of a wholly new, student run credit union credit union at the Washington DC institution.

How cool is that.

The effort has been written up in Credit Union Times, and here Mr. Pankhaniya talks for himself.

Know this: he thinks very big. What if, he asks, if they can roll out credit unions at universities across the nation? What if indeed.  Not only would that get students familiar with credit unions it also would provide a stream of trained potential hires for credit unions.

The hope is to launch the credit union in the fall, a date that had been May but the coronavirus epidemic has pushed that back.

Pankhaniya and his fellow students also need to raise around $55,000 more to meet NCUA's capital requirements.

It's an exciting story.

Along the way, we discuss CUNA's "Open Your Eyes" campaign - hear our podcast with Teresa Freeborn on this.

Know too that a recent podcast guest, Bill Kennedy, is a booster of this effort. Hear him on students and their need for mentors here. 

And to learn more about start up Maine Harvest - now successfully chartered - listen here.

Hear the Pankhaniya podcast here.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto

CU 2.0 Podcast Episode 91 Sherif Hassan Capiform on Smarter Lending Now

How could we build a lending tool that anybody could use?

That is the driving thought that led Sherif Hassan to form fintech Capiform and the timing could not be better.

That's because, with the Covid-19 pandemic and the ensuing recession, suddenly credit unions are awash with savings deposits (as investors flee equity markets) and they also see a rush of loan applicants, for everything from Covid-19 triggered SBA loans through equipment leases.

How to efficiently handle the volume?

Know that right now deposits are arriving at much large volume than are loans at credit unions - despite the member needs.

Remember, too, mega banks, for the most part, have scant interest in "small" loans which to them often means under $250,000. But to a typical credit union that size loan is ideal and even smaller may be better.

But the mega banks shy away from those loans because they don't see how to make money on them.

How could a credit union hope to? That's where Capiform's tools come in, where the borrower does much of the work and that's augmented by computer tools (that verify income, check identity, etc). Much of the process is automated. According to Hassan, using his tools, a credit union could easily process 10X more loans, maybe 20X, daily without stressing staff who would engage only in higher level tasks such as verification and loan approval.

Adds Capiform, "Capiform’s Lending-as-a-Platform empowers you to scale your lending portfolio immediately, configure underwriting instantly and deploy new compliance & product guidelines."

Sound good?

You bet and the timing is so right.

In this podcast you will hear about how the Capiform tools were developed, what they do and how, and the real benefits they could bring your credit union.

Listen up.

Want more info? Contact Capiform at its website.

In this podcast there's mention of the David Chang podcast.  Listen here.  Note: Chang uses many four letter words. Not for delicate ears.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto

CU 2.0 Podcast Episode 90 Bill Kennedy Tells How Many Credit Unions Will Close in the Next Year

Bill Kennedy has spent a credit union career moving from institution to institution. He has worked at 11 - "6 or 7 were turnarounds, 1 was a startup," said Kennedy.

Often he's been CFO, and he has also served as CEO. He's seen a lot in his years at and near the top.

Know this about this podcast: Kennedy speaks his mind and he doesn't soften his opinions.

And he has a very strong opinion about how many credit unions will close in the next year, mainly as a consequence of coronavirus.  It's a big number. You want to hear it.

Along the way he says a huge credit union problem is poor board quality - and he does not mince words about that.

He also is worried about the industry's comparative inability to attract smart young professionals as employees - the industry is aging out at a time when communicating with young consumers is paramount.

He asks as well how many young professionals you have mentored. He says he has mentored 80+ in the past 25 years.

That will be critical because he predicts around half of senior credit union executives will retire in the next few years. Who is on deck to fill their jobs? At many credit unions the answer is nobody - and that, by the way, is another reason many credit unions will close.  There will be a shortage of qualified senior executives.

Think this is a bleak podcast? It's not a cheerful one. But Kennedy's are provocative ideas you need to hear.

Hear the Kennedy podcast here.

Mentioned in this podcast is retired SECU CEO Jim Blaine - his podcast is here.

For a different perspective on boards, there's the John Pembroke, CUES, podcast.

Like what you are hearing? Find out how you can help sponsor this podcast here. Very affordable sponsorship packages are available. Email rjmcgarvey@gmail.com

Find out more about CU2.0 and the digital transformation of credit unions here. It's a journey every credit union needs to take. Pronto