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For the team at Patelco Credit Union, credit is at the core of general wellness. And underserved communities have been impacted most by a lack of credit access. Yazel Pardo, VP, Head of Credit Risk at Patelco Credit Union, discusses how mission alignment, model risk management and model performance made Upstart stand out as an AI lending partner. "With all the technology and data available, it seems pretty archaic to use a [credit] score that was developed over 25 years ago with rudimentary mathematical techniques," says Pardo. Check out our latest testimonial to hear how Patelco is acquiring members, lending deeper into the credit spectrum and deploying capital to meet their returns and expected losses with Upstart.

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In the ever-evolving landscape of finance, the question of whether lenders should be required to serve all industries, regardless of their expertise, is becoming increasingly relevant. Randell Leach, CEO at Beneficial State Bank, puts it succinctly: "Requiring all banks to lend to all industries — no matter their model, expertise, or customer base — doesn’t make business sense. Corporate lending is complex and nuanced. A bank that specializes in residential lending can’t apply that same expertise to financing tar sands refinement." #TLG #TheLoringGroup #CorporateLending #BankingExpertise #FinancialStability #EconomicGrowth #SpecializedBanking #RiskManagement #BankingRegulations #LendingStrategies #FinancialSystem #BankingSector #EconomicPolicy #RandellLeach #BeneficialStateBank #IndustryExpertise Read the full blog on our website: https://lnkd.in/dxPcuVtg

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OCMBC and its DBAs are #1 in Non-QM Originations in CA! According to the Forecasa Non-QM Pulse Report 2024. #ocmbc #wholesalelending Intended for use by real estate and lending professionals only and not for distribution to consumers.

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Republic First is the first FDIC-insured bank failure of 2024. How will regional banks deal with extended periods of high interest rates? Fulton Bank, hailing from Lancaster, Pennsylvania, recently clinched a deal to acquire the assets and deposits of Philadelphia's Republic First Bank, a move announced by the Federal Deposit Insurance Corp. The acquisition, marking the end of Republic First’s internal struggles, includes its 32 branches spanning the Philadelphia area, New Jersey, and New York City. This strategic move propels Fulton Bank's assets by $5.2 billion, with a significant portion attributed to a $2 billion investment portfolio, signaling a noteworthy shift in the regional banking landscape. The anticipated cost of the bank's collapse is $667 million to the deposit insurance fund, a far cry from the initial projection of $20 billion for Silicon Valley Bank's failure. While this collapse doesn't signal systemic problems, it highlights the difficulties regional banks face, such as losing deposits to larger competitors and experiencing a decline in the value of their loan portfolios due to increased interest rates. Reach out to us for more banking news. Ryan Wolf 📞 (972) 755-5207 ✉️ Ryan.Wolf@marcusmillichap.com Luke Sullivan 📞 (972) 755-5198 ✉️ Luke.Sullivan@marcusmillichap.com 👉 Click link for details: https://lnkd.in/gdsCuqu5 #NNN #retail #realestate #investment #investing #commercialrealestate #property #passiveincome #cre #investor #realestateinvesting #commercialproperty #netlease #retailrealestate #republicfirst #fultonbank #banking

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Now more than ever, it is essential to have an accurate view of your CECL reserves. Looking more closely at the recent CU Times report on 1Q24 credit union earnings, what stands out is the volatility in provisions for loan losses, which have a major impact on the bottom line. You don’t need to be a top-10 credit union for CECL reserves to have a dramatic effect on one’s earnings performance. With originations down and more credit unions turning into participation buyers, be sure to have a trusted CECL analytics solution in place to set aside credit loss reserves that most accurately reflect the profile of your participation portfolio. You can learn more about LoanStreet’s solution here. https://bit.ly/3WwtyJr Read the CU Times report: https://bit.ly/3WwMSpT

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SBA Needs Vs SBA Lender Needs

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PeoplesBank and Cornerstone Bank have announced an agreement to combine their holding companies. While the merger agreement will unify holding companies, both banks will continue operating under separate names and brands for the foreseeable future.   What does this mean for our customers? Nothing, really. There will be no changes to accounts, products, hours, locations….anything at all. No changes.   What does this mean for our associates? More opportunities for growth and advancement.   What does this mean for our communities? More support, more volunteerism, and best of all, more Real. Simple. Banking.   For more information https://lnkd.in/e_ib7JVu   Pictured: Todd Tallman, CEO, Cornerstone, Tom Senecal, CEO, PeoplesBank #BankAtPeoples

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We have been diving into the 2023 HMDA by institution type. Today’s chart looks at the Top 15 counties in the US (1-4 Family Units) by both purchase mortgage dollars and units. A few tender data nuggets: 1)    Los Angeles is the largest county by dollars, dwarfing the second largest market by dollars (Maricopa CY) by $8 Billion! Its average loan size is $784,000. 2)    The largest average loan size on this list belongs to Santa Clara, which averages a whopping $1.1 Million per loan! 3)    Maricopa is the largest county by units by over 7,000 loans over #2. 4)    The Dallas market has not one but THREE counties in the top 15 in both units and dollars—Collin, Dallas, and Tarrant counties. (Thanks to James M for the catch!) 5)    The most “affordable” county is Bexar in San Antonio, with an average loan size of $302,000. #iEmergentInsights #2023HMDA #mortgage #mortgagelending

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Is your credit union implementing strategies that truly put your members' needs at the center? 🤔 Velera's 2024 CU Growth Outlook research study, completed in partnership with EY and Filene Research Institute, examines how CU member behaviors, preferences and pain points have evolved. Discover how starting from within — through talent, culture alignment and operations — leads to sustainable growth. ➡️ Download the white paper: https://bit.ly/3ytfC9l #WeAreVelera #CUGrowthOutlook #CreditUnions

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In a recent release, KBRA provides an insightful review of manufactured home communities (MHCs), highlighting their affordability, performance trends, and credit characteristics. This research comes at a time when MHCs are increasingly gaining attention as a viable affordable housing option, particularly as families face escalating single-family home prices and rising multifamily rents over multiple years. MHCs operate primarily as a land lease business, renting home pads to owners of prefabricated homes. Due to higher demand, MHCs have seen rising rents and occupancies. Despite being a small segment of the U.S. housing market, accounting for 6.4% according to the Census Bureau, MHCs are crucial. The Manufactured Housing Institute reports over 43,000 MHCs in the U.S., with almost 4.3 million homesites. Key Takeaways: Affordability Comparison: The Census Bureau indicates the average price for a manufactured home is $121,300, significantly lower than the $487,300 average price for a single-family home. Cost of Ownership: The average monthly cost to own a manufactured home is $1,317, compared to $2,188 for a single-family home, demonstrating substantial savings for homeowners. Zoning Regulations: A major barrier to MHC growth is local zoning regulations, which often limit the development and expansion of these communities. Increasing Demand: Demand for MHCs is rising, as evidenced by a 7.3% year-over-year (YoY) growth rate in average monthly MHC rents in 2023, the largest annual increase in the past two decades. In contrast, multifamily rents saw a 1.6% YoY decline in 2023, following two years of 23% YoY gains. Occupancy Rates: Average MHC occupancy for 2023 was 94.7%, comparable to multifamily occupancy rates, which stood at 94.5%. Securitization Trends: Between 2017 and 2023, $10.1 billion worth of MHCs were securitized, encompassing 1,384 MHC properties through Freddie Mac and conduit transactions. Credit Performance: The strong credit performance of MHCs is highlighted by a low aggregate Freddie Mac and conduit MHC delinquency rate of 0.32%, compared to 1.35% for multifamily properties. Historical Default Rates: Over a longer period, MHC loans have shown favorable credit performance, with a cumulative default rate of 8.1%, significantly lower than the 13.8% default rate for multifamily loans, as per KBRA’s November 2021 Conduit CMBS Default and Loss Study. As families continue to seek affordable housing options amidst rising costs in other segments, MHCs represent a critical component of the housing market. Their affordability, strong credit performance, and increasing demand underscore the importance of these communities in addressing the nation’s housing needs. #ManufacturedHousing #AffordableHousing #RealEstate #HousingMarket #MHC #HomeOwnership #RealEstateTrends #HousingAffordability #PropertyInvestment #CommercialRealEstate #KBRA https://lnkd.in/er4HJtY4

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Ag lending partners - if you have questions on risk management, regulatory and compliance, new tools and technologies, your secondary lending partner should be your go-to resource. More than just a source of capital, secondary market partners should serve as your agriculture industry experts, partnering with you to help grow your ag loan portfolio and better serve your clients. Click the link below to read our newest article on this topic, "How to Optimize Secondary Market Partnerships," via Bank Director: https://ow.ly/lI2050S7osg

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HilltopSecurities recently welcomed Managing Director Gary Garay as Head of Municipal Housing Banking in Miami, Florida. The firm also has recently added public finance investment bankers Managing Director Tania Askins in Dallas, Texas and Senior Vice President Connor Benoit in Charlotte, North Carolina. The new hires are the latest example of HilltopSecurities’ continuing expansion, as the firm has added more than a dozen experienced public finance investment bankers since the beginning of 2024. Read the full press release here: https://lnkd.in/gSey_syz #HilltopSecurities #PublicFinance #InvestmentBanking

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A 47% increase in Same Day ACH volume helped lead the way as the ACH Network began 2024 by handling 8.2 billion payments in the first quarter. There were 273.7 million Same Day ACH payments in the first quarter. The value of those payments was $719 billion, up 27.2% from a year earlier. Same Day ACH volume in March 2024 was 95.6 million, averaging more than 4.5 million payments per day, both all-time monthly highs since Same Day ACH launched. Business-to-business (B2B) payment growth remained strong, with 1.7 billion payments in the first quarter, a 10.8% increase. Total first quarter ACH Network volume was 8.2 billion payments valued at $20.7 trillion, respective gains of 5.6% and 5%. #ACH #SameDayACH #FedACH #NACHA #ACHNetwork #CHIPS #RTP #FedNow #Payments #InstantPayments #RealTimePayments #Zelle #ChinnapaReddy #Banking #Innovation #Fintech #BillPay #B2B #FasterPayments #B2BPayments #SWIFT #NEFT #RTGS #FedWire #LYNX #CHAPS

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Join us on Tuesday, June 11, for a discussion around Sustainable Business Practices! It's such an important and relevant topic that affects all industries, especially amid ever-evolving policies. #svb #esg #sustainability

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Credit quality holding steady among U.S. cities in post-COVID recovery, though commercial real estate, sluggish revenues, and rising costs pose medium-term challenges. https://okt.to/yPIgYV

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