Print Versus Digital Forms in Lending

Printable Versus Digital Forms: A Different Process for Each in the Loan Process

Credit Union Digital versus Printed forms for Lending

Credit unions today are all about options. Forms are no exception. While many use paper forms for the majority of their processing with no issues, digital forms can speed up the process by making it more efficient. Let’s highlight the differences by comparing print versus digital forms in lending.

Printed Forms Loan Process

• A member makes a loan request and is paired with a team member.
• The team member explains different options to the credit union member and provides them with a loan application to fill out.
• The member may fill out the application at the credit union or take it with them and return later with a completed application.
• From there, the loan is underwritten and funds are supplied for the member to make a purchase.

This is how many credit unions have approached consumer lending for years. However, with an increase in member growth via membership rule changes and mergers, many other credit unions use digital forms as an integral part of their process, because it streamlines efficiency. Take a look at the section below.

Digital Forms Loan Process

• Forms are stored online. A member may either make an inquiry in-person to a team member or inquire online.
• If a team member is asked, they will point the client to the loan section of the credit union’s website.
• The member accesses the form online and provides the necessary information.
• A team member follows up with the credit union member for processing and approval.

Indirect Benefits of Digital Forms

Clearly, digital forms are more efficient. They save time since credit union staff can point members to their website to fill out forms for pre-approval. A follow-up can be scheduled for a time that is convenient. Digital forms are productivity producers. Also, since the process is more streamlined, the potential for servicing more loans is very real. Digital forms can provide an indirect increase in lending growth simply because credit union staff have the capacity to serve more members.

The key is being able to market the service tactfully. Some members may feel like they are being discounted when asked to fill out a loan application online. Disabled members may also prefer print documents to digital documents. According to the National Federation of the Blind, an estimate of as many as 10 million Americans are blind or visually impaired, such as having difficulty reading or are unable to read letters in regular print, even while wearing ordinary glasses. It’s all a matter of perspective, though. The fine line is the difference between shuffling a member over to an online portal versus presenting them with an easy-to-use online loan application process they can complete in their spare time.

Of course, there will always be those individuals who prefer printed forms to digital forms, and vice versa. That’s why we provide compliant options for both. We work with any data processor and insurance carrier nationwide. If you have a question about how digital forms can streamline your lending process, we can help. Print versus digital forms in lending seems pretty clear cut, but you always have to look at your credit union’s situation for any particulars.

Email clientservices@oaktreebiz.com for more information. We have almost 40 years of industry experience and are ready to put it to work for you.

Community Leaders

Humanitarian Highlight 6.24.21

For this week’s Humanitarian Highlight, we want to take a look at how, even in these challenging times, CUs continue to be community leaders. Is your credit union a stand-out when it comes to charity and community? Then hit us up on social media and let’s help get the word out on your good works!! From recycling to baseball and the most vulnerable let’s look at how CUs maintain their positivity and stand out as community leaders.

Premier Members Credit Union

In April, Premier Members CU hosted their first electronics recycling event. Over 600 employees and members participated in the event. As a result of the larger participation, Premier Members CU collected 27,307 pounds of electronics that would have been in the landfill. This resulted in a 41,817-pound reduction of greenhouse gases. The event was held in honor of Earth Week and to raise awareness of the environment and our impacts on it.

Advantage One Credit Union

Advantage Once CU values education in their community. In honor of supporting continuing education, Advantage One has awarded a $2,500 scholarship to three students to further pursue their education journey. The students were chosen based on essay submittal as well as academia. Advantage One CU is committed to the credit union philosophy, people helping people,” and continues to prove that regularly.

Midwest Members Credit Union

Midwest Members CU has been donating to the Tri-City Baseball/Softball League for the past 6 years. It is very important to them to make an impact on their community and this is a perfect way. Sports brings together not only the children playing the sport but also the families. Midwest Members CU donated $5,000 which goes towards keeping the league registration fees at a low cost so anyone can participate in baseball or softball. Over the last six years, Midwest Members has donated $45,000 to the Tri-City Baseball/Softball League.

Redstone Federal Credit Union

Redstone FCU donated certified CPR training kits to 5 high schools. These kits will be used to teach students priceless lifesaving training. The kits are worth about $20,000. The training the students will receive can be used to potentially save lives. Redstone FCU recognizes the importance of this invaluable knowledge that the students can share.

Northern Credit Union

Northern CU in Watertown, New York donated to the Carthage Area Hospital Foundation (CAHF). The donation of $3000 goes directly to the Carthage Area Hospital. Whether it is towards equipment purchases or healthcare expenses, the donation will make a big impact on the hospital. Northern CU wanted to show their gratitude to the Carthage Area Hospital healthcare workers and especially during the past year, they have faced difficult challenges. This donation does not just give back to the hospital, but also to the community.

 SRP Federal Credit Union

The SRP FCU donated over $138,000 to Aiken County Public School District. They raised this money through a high school debit card program. After each purchase with the debit card, SRP donates 5 cents. The donation will be allocated to multiple schools in the district for an assortment of different funding needs. SRP FCU employees and members realize the importance of funding needed for schools in their community.

Oak Tree Business Systems, Inc.

Thank you for reading this Humanitarian Highlight! It was inspiring to see CUs standing out as community leaders, especially during these challenging times. Please check out last week’s, and please do not hesitate to contact us with any questions about our products & services through our email or by phone (800) 537-9598.

5 Reasons Credit Union Lending Beats the Bank

5 Reasons Credit Union Lending Beats the Bank

The next time one of your members thinks about getting a loan to make home repairs, finance a new home, or purchase a vehicle, use the five tips below to help the member choose you as a lending option. People often operate under the assumption that a bank is the only place that can serve their lending needs. It might be time for you to shine a little light on the subject for the potential borrower. Listed below are our 5 reasons credit union lending beats the bank for lending.

5 Reasons Credit Union Lending Will Beat a Bank Every Time

1. Higher Approval Rates If your member’s credit is stained, dirty, or needs a bit of repair, your credit union is much more likely to be accommodating than a bank. Though the loan terms and processes are very similar, credit unions are known for listening to their members’ needs. Credit unions are most likely to understand that unique situations occur, and will work toward loan approvals. They will even adjust loan terms accordingly in some instances. Book any type of loan when you use Oak Tree forms.

2. Better Rates To explore this, let’s look at vehicle loans. Typically, most of us will secure a five-year loan for a vehicle. The rate at the credit union will be much lower than the interest rate at a traditional bank. It may only look like a 1% difference, but that 1% can add up to thousands of dollars put back into your member’s pocket during the life of the loan. Oak Tree forms stay on top of state and federal compliance laws and their ongoing changes, which supports low-interest rate loans.

3. Better Services Since credit unions are classified as nonprofit, they don’t answer to a shareholder board. Operation decisions are usually made by a volunteer board, rather than corporate office appointees. To that end, members feel much more comfortable talking to their credit union about payment options and services. It is much easier to talk to someone when you feel like they genuinely have your best interest at heart. In addition, Oak Tree seamlessly integrates your credit union forms into your data processing system with Data Linking, allowing for faster loan processing, and saving your members time.

4. Educational Resources Your credit union may have a resource center, which serves to educate your members on different finance options, financial products, and bank accounts they may have. Utilizing this resource can aid members in making a decision that best suits their needs when it comes time to secure a loan or otherwise. In addition, your credit union will probably go the extra mile, being a member-driven financial service institution. For instance, the credit union may determine the value of a vehicle so the member feels good about the loan before applying. Since the credit union is nonprofit, their answers are unbiased, so members know the credit union is not trying to inflate or deflate the value of the vehicle to stick them with a higher-rate loan. Oak Tree also offers training so your credit union staff is ready to use our forms and help members obtain the best loan.

5. No Selling Since they are nonprofit, credit unions essentially work for you. There is no incentive for them to sell you any new product or service. All profits generated by the credit unions go back to members, showing up in lower interest rates or new financial products, like different savings account loan options. This makes it easy to find a credit union that meets your needs. This, in addition to a faster loan processor, will lead to word of mouth from happy members.

Now you can put a bug in your member’s ear so to speak, the next time the subject of lending comes up. Use these 5 tips to promote yourself. Of course, Oak Tree will stand ready as your forms provider. The friendly, consistent, and trustworthy nature of your credit union, coupled with our compliant lending forms, will ensure that your members have a great borrowing experience. Members will be glad they made the switch!

CUs Expressing Gratitude

Humanitarian Highlight 6.17.21

For this week’s Humanitarian Highlight, let’s take a look at CUs expressing gratitude for their communities. Is your credit union a stand-out when it comes to charity and community? Then hit us up on social media and let’s help get the word out on your good works!! From anniversaries to new ambulances and the most vulnerable let’s look at how CUs are expressing their gratitude within their communities.

Atlanta Postal Credit Union

Atlanta Postal CU participated in their local Channel 9 News Food Drive. They were able to collect over 5,500 pounds of food for various food banks in the region, it will be able to provide almost 4,500 meals for those in need. APCU collected 974 pounds of that food for Feeding the Valley, a member of the Georgia Food Bank Association. The amount of food they collected will provide a few hundred meals. APCU has contributed a lot to those struggling during these difficult times.

AmeriCU Credit Union

AmeriCU awarded ten $1,000 scholarships to students that are continuing their education or starting college in the fall. The CU has awarded scholarships to students every year for the last 20 years, it is very important to them to keep the tradition active. Education is very valuable and being able to provide assistance so they can achieve their education dreams is inspiring.

Kemba Financial Credit Union

KEMBA FCU has recently announced a $100,000 donation to the Mount Carmel Foundation. The donation will go towards Mount Carmel’s Street Medicine program. Some of the proceeds will go towards the purchase of reliable transportation to provide faster and safer healthcare to those in need. The foundation helps anyone that has trouble accessing medical care. This large donation will be able to make a huge difference in the foundation as well as their patients’ lives with quicker and more reliable transportation for the patients.

Hiway Credit Union

Hiway CU donated $100,000 to the Hiway Foundation in honor of their 90^th anniversary. The foundation was established in 2017 to strengthen and aid their community. The last year has been very difficult for many. Hiway CU‘s additional donation to the foundation will go towards organizations that address food insecurity, education, and civil rights in their community. Hiway CU listens to their community and has been for 90 years. They have donated and supported many local organizations over the years.

Abound Credit Union

Abound CU prioritizes education in their community. In addition to their financial education program for all fifth graders in Harding County Schools, they donated $5,000 to assist students with the transition from elementary school to middle school. The donation will be used to implement financial literacy through community events led by the students. This is an opportunity to show the community and families the students’ foundation of financial literacy. Teaching financial literacy to children is a valuable skill they will be able to apply their entire life.

City & County Credit Union

City & County CU gave back to local non-profits through their making the Greater Good Even Greater contest. The contest nominates local non-profits for a $2,000 donation for doing good deeds in their community. The local businesses and non-profits are nominated by City & County members. Once the contestants are finalized, they hold a Facebook vote and from there, determine the winners. This year, Ruby’s Pantry and Little Gosling’s Daycare each won the $2,000 donation. City & County CU loves celebrating local organizations that make a difference in their community, as well as raising awareness for all of the contestants’ organizations.

Oak Tree Business Systems, Inc.

Thank you for reading this Humanitarian Highlight! It was great to see CUs expressing their gratitude for their communities by supporting them. Please check out last week’s, and please do not hesitate to contact us with any questions about our products & services through our email or by phone (800) 537-9598.

Credit Union ComSec

Confidentiality, Communications Security and Other Issues That Put Sensitive Info at Risk

Credit Union Communication Security

Communications Security, also known as ComSec is the protocols put in place to secure the communications and data of an organization. Credit Unions handle tons of personal data, millions to billions of assets, and must comply with an ever-evolving and changing regulatory landscape — so credit union ComSec is a concern for all credit unions.

The digital age grows stronger every day, and with innovation comes breaches and security threats testing the boundaries and strength of each new step forward. With the growth in technology and widespread information sharing, financial institutions need to keep up with the movement and continuously be aware of the current security state. Gone are the days when safes and locks kept the gold in one place, and physical evidence was needed to prove identity. 

As a primary institution, members rely on credit unions to protect their valuable assets from the growing dangers of identity theft, breaches, fraud, etc. … This protection begins in-branch with tightening operations to a lock and key level, starting with security protocols and placing restrictions on documents and member information so that it is not treated like an old newspaper. We can’t forget about moments like Wendy’s data breach.

We do not realize how accessible internal and personal information is to inside and outside threats. A simple document may contain valuable information like birth dates, social security numbers, maiden names, etc. – and the disposal and treatment of this common document are treated as such. Placing disposal protocol on information-sensitive documents protects your FI and your members.

In today’s society, a released phone number can create months of spam calls and even fraudulent phishing scams to individuals. Even basic member information can be used against them in the wrong hands, and it is the responsibility of your credit union to create a safe storage space for their assets, both monetary and identity.

Credit Union Employee ComSec

Building on a more secure physical workspace starts at the employee realm. Have organized workspaces, and keep documents in the right place for certain needs. A messy desk can turn into a quick toss of member-sensitive documents for the purpose of clearing space. Organizational systems create a sense of order and security for employees and members.

Creating a hierarchy of accessibility can be a spearheaded plan for identity protection. Not all of your credit union employees need access to member information and documents containing it. Continuing the organization into tasks – the credit union employees that complete tasks using certain documentation are the only people who need access to those documents. This creates a lowered risk of lost documents and the spread of information.

Beyond the physical branch, accessibility restriction for digital systems is of utmost importance. So many attacks are digital, and it is important to keep system data fully secured and protected. Always keep devices and applications password protected with unique and varied passwords — Check in with core processor vendors and data linking companies to ensure security integrity.

Above all, the best way to protect your members is by helping them to protect themselves. Distribute fraud security tips with new accounts as well as reminder emails to update your members about current scams and threats. This effort not only protects your members but also builds trust and loyalty between members and FI.

Oak Tree offers compliant solutions to data linking for complaint lending and works with every data processor for smooth and simple integration. We also offer marketing services to help your credit union reach your members and share fraud security tips, tricks, and event updates. Contact us today to learn more.

Building Blocks of Communities

Humanitarian Highlight 6.10.21

Humanitarian Highlight 6.10.21 | Building Blocks of Communities

For this week’s Humanitarian Highlight, we want to take a look at how CUs have become essential building blocks of their communities. Is your credit union a stand-out when it comes to charity and community? Then hit us up on social media and let’s help get the word out on your good works!! From scholarships to local businesses and the most vulnerable let’s look at CUs have become essential community building blocks.

Alliance Credit Union

Alliance CU held a shred day to raise money for the Texas Boys Ranch. Thanks to their members and community, they were able to raise almost $4,500. Texas Boys Ranch is a foster care and adoption ranch that houses boys and girls in small group homes. The large donation from Alliance CU will be able to feed 21 children for about 6 months.

Alternatives Federal Credit Union

Alternatives FCU is partnering with Black Hands Universal to help people of color and Indigenous people in their local community to help fund housing or businesses for them. The partnership between the philanthropic organizations was a result of an alignment in their want to help the community. They both want to help those who have not had the same opportunities as others with their finances. AFCU can grant awards to people that make less than the stated amount with a viable business idea as well as matching and encouraging savings accounts. As for the housing program, the partnership wants to be able to award eligible families up to $20,000 to help with purchasing a home. AFCU and BHU are inspiring to see their dedication to helping their communities.

1st MidAmerica Credit Union

The American Cancer Society Colors of Cancer Metro East fundraiser raised almost $30,000 during the month of April. Many organizations participated in the campaign and each chose a cancer type and the coordinating color that represents it. 1st MidAmerica CU raised over $5,000 for breast cancer. They raised the funds as well as held educational programs to raise awareness for their members and employees. The Fundraiser raised a total of $29,000 for the American Cancer Society.

Member One Federal Credit Union

Member One FCU donated $1000 to feeding Southwest Virginia in honor of their 80^th annual meeting. The donation was made in honor of their members. Member One FCU has partnered with Feeding SW Virginia for many years, in fact, they have been able to provide 35,000 meals in the past year. Member One FCU is dedicated to feeding their community and helping fight hunger in their community.

First Financial of Maryland Federal Credit Union

First Financial FCU recognized 49 high school seniors and granted them scholarships to celebrate the Class of 2021. The scholarships totaled $147,000 and over the past 23 years the program has been active, they have gifted over $2.1 million in scholarships. These scholarships have benefited more than 650 graduates since the beginning of the scholarship program. Education is very important to First Financial FCU and they will continue to help these outstanding students in their academic endeavors.

Peach State Federal Credit Union

Peach State FCU C.A.R.E.S. Foundation has donated $177,000 in scholarships and grants to graduating class of 2021. Their scholarship program has been effective for the last 19 years and has donated more than $1.7 million to students. Peach State FCU awarded 26 scholarships to members that are continuing their education and 7 student scholarships for incoming college freshmen. They also awarded educational grants to local schools. Peach State FCU values education and continuing it in their community.

Oak Tree Business Systems, Inc.

Thank you for reading this Humanitarian Highlight! It was great to see CUs contribute to the building blocks of their communities during these challenging times. Please check out last week’s, and please do not hesitate to contact us with any questions about our products & services through our email or by phone (800) 537-9598.

Climate Change and Mortgage Lenders

Climate Change and Mortgage Lenders

A home is a safe haven for members, and the biggest, most important purchase many will ever make. As a trusted source of lending and financial expertise, credit unions have an obligation to administer the benefits of fair rates on mortgage lending, as well as provide financial education to understand the risks involved with owning and operating a home. A lot of that risk can depend on location and the changing climates. This is why we wanted to look at climate change and mortgage lenders today.

Natural disasters cannot be predicted, but property-owning members and financial lending institutions can be prepared for them. Fires in the west, blizzards in the north, flooding in the south; over the past years, many homeowners have been surprised by nature’s destructive and abrupt course. Many of those caught in these disasters were not prepared with insurance to cover any and all possibilities of property destruction in their areas.

This unpreparedness puts the majority in jeopardy and causes debt, mortgage defaults, and eventually, property loss. With these defaults and strained situations, most lenders look to Fannie May and Freddie Mac to take on property mortgages to lighten portfolios and escape delinquency. It is then up to taxpayers and the government to clean up and fund reconstruction, which shifts state and federal spending and debt.

Whether one believes in global warming or not, climate change and natural disaster rates have been available as proof that the world is changing along with past regulatory forecasts. On the horizon of increasing climate-shift awareness, it becomes imperative for lenders to consistently be aware of possible risks and forecasted possibilities, as well as relay information, require necessary insurance, and provide compliant forms and disclosures to protect the institution, member, and community.

Fixed Mortgage Rates & Climate Change

Fixed mortgage rates lock in home buyers to essential regulations and disclosures for 30+ years. A length of time which can hardly perceive the possible changes in shifting climates and incoming disasters.

According to MarketWatch.com “The number and total value of flood insurance policies have been declining since 2006, meaning that households that purchased a property in coastal areas especially may be at increased risk of defaulting on their mortgages. Commercial banks, including two of the largest U.S. mortgage lenders, JPMorgan Chase JPM, +0.69%, and Wells Fargo WFC, -0.08%, have the ability to price mortgages for flood risk, and by design they can securitize some of these loans, thereby spreading the risk to more parties.”

Leaning on government funding agencies fuels lending for financial institutions as a safety net for defaulted portfolios. This allows unassuming members who strive for the status of homeownership to jump into high-priced mortgages in potential hazard and climate-changing zones, ultimately putting the property, buyers, and lender in a risk area that inadvertently will be picked up by taxpayers and hurt real estate economy, through Fannie and Freddie in a time of disastrous outcomes.

The seeds of change have been planted, with many startup companies beginning to dive deep into climate change forecasting and disaster risks measured to inform the housing market and more importantly, the lenders and buyers.

”Some of the players include Four Twenty Seven Inc., which this year was acquired by the credit-ratings firm Moody’s, and a 3-year-old firm called Jupiter, which converts flood, fire, heat, drought, cold, wind, and hail events into risk modeling for real estate assets, including in such high-population coastal areas as New York and Miami.” MarketWatch.com

Some are requesting reforms to Fannie and Freddie that would require insurance or raise guarantee fees as a precursor to absorbing mortgages from lenders. Making mortgage terms flexible in change regulations for changing climates in terms of necessary insurances will make lenders and buyers responsible and less likely to default and lose property in the face of disaster. When it comes to climate change and mortgage lenders it pays to prepare and plan ahead.

Oak Tree is compliant in all 50 states, and creates customized form packages containing compliant, informed, and prepared forms and disclosures for your credit union including flood hazard determination forms or flood hazard insurance notice. Don’t wait for another disaster to strike: get your lending team and your members prepared and secured for the future. Contact us today!

CUs Local Heroes

Humanitarian Highlight 6.3.2021 | CUs Local Heroes

Humanitarian Highlight 6.3.2021

For this week’s Humanitarian Highlight, we want to take a look at how, even in these challenging times, CUs continue to be the local heroes of their communities. Is your credit union a stand-out when it comes to charity and community? Then hit us up on social media and let’s help get the word out on your good works!! From beach cleanups to blankets and the most vulnerable let’s look at how CUs maintain their positivity and are the local heroes of their community.

Christian Financial Credit Union

Macomb Country Rotating Emergency Shelter Team (MCREST) is a community shelter for mothers and their children to go to who are experiencing homelessness. MCREST is holding a Moms for Moms campaign in honor of Mother’s Day. Christian Financial Credit Union has graciously donated $10,000 towards the new shelter at MCREST. This campaign will be towards the necessities for the new shelter like beds, books, toys, and blankets. The new shelter will be able to house up to 45 mothers and their children. Christian Financial CU wants to continue making an impact within their community and this Mother’s Day campaign was a great opportunity for them to make a difference.

HawaiiUSA Federal Credit Union

Non-profit, 808 Cleanups has been cleaning up Hawaii’s beaches and parks for the last 4 years. Recently, due to the pandemic, the non-profit had lost its yearly grant.  HawaiiUSA FCU donated $5,000 to 808 Cleanups. This amount will make a huge difference and will go right into the project they are working on. 808 Cleanups has cleaned up more than 700,000 pounds of garbage in Hawaii. Thanks to HawaiiUSA FCU they can continue to make Hawaii a cleaner destination.

Global Credit Union

Global Credit Union employees raised nearly $3,000 for Walk MS. During April, Global CU employees were able to raise the funds by having an internal company-wide raffle as well as by personal funding. They were able to reach their goal and help members of their community battling MS.

Credit Union West

Credit Unions West’s EmployeesCare Program raises funds for local organizations throughout their community. Through this program, Credit Union West was able to donate $3,000 to AZ Blankets 4 Kids a non-profit that hand makes blankets for children that are in need. They have been able to donate more than 135,000 blankets to children in need located in the Phoenix area. Credit Union West community and members of their community are their top priorities as a credit union.

Yolo Federal Credit Union

Yolo FCU has chosen three local organizations to donate a total of $5,000 in honor of the Big Day of Giving. They picked Empower Yolo, The Yolo Community Foundation ad Yolo County CASA. All of these organization shave made big impacts on the community, as well as Yolo FCU. Being the only credit union in the county, Yolo FCU does as much as it can to positively impact its community.

USF Federal Credit Union

USF FCU has recently partnered with AdventHealth West Florida to help maintain a healthy community and support local hospitals. This partnership included a donation of $150,000. This large donation is going to be divided up between 3 organizations with AdventHealth. Part of the donation is going to a new MRI machine, after having a 17-year old one as well as meals for frontline workers at the hospitals.

Oak Tree Business Systems, Inc.

Thank you for reading this Humanitarian Highlight! It was great to see CUs take lead and be their local community heroes during these challenging times. Please check out last week’s, and please do not hesitate to contact us with any questions about our products & services through our email or by phone (800) 537-9598.

On a final note, we have started a new feature, the Credit Union Roundup, and we hope you return tomorrow to see what is going on in the Credit Union community and how CUs are local heroes within their communities continue to inspire every day!