That realization landed with force for Tracy Verner, community development manager at Alltru Federal Credit Union ($392.5M, Wentzville, MO). After years of watching members absorb financial education but remain boxed out of the system, she began pushing the cooperative to rethink what real progress looks like — what financial empowerment looks like.

“Financial empowerment is information combined with access,” she says. “Many financial institutions offer well-meaning financial literacy — workshops, gamified apps — but it’s still just information. We’re doing an injustice if we provide information without the tools to apply it.”

The philosophy has changed the way the St. Louis cooperative operates, from product design to employee training. The result? Stronger culture, deeper partnerships, and helping more people who otherwise might have remained unbanked.

Gaps And Barriers

To truly empower members, it’s necessary to understand the barriers they face and examine who the credit union is not yet serving.

“If you’re truly committed to empowerment, it’s your responsibility to provide access,” Verner says. “Credit unions were built on inclusion, so ask: ‘Who’s being left out, and why?’”

An early experience in Verner’s credit union career underscored to her the importance of doing things differently. Speaking with a workshop attendee after an event, Verner learned the woman couldn’t open a checking account.

“I was floored,” Verner says. “She had steady income working for the city of St. Louis but couldn’t access a checking account. This was before fintech tools like Venmo or Cash App. She was receiving paper checks, and when the city stopped issuing them, she was forced onto a prepaid card with fees.”

Verner met with her boss and learned the woman had an incident in her ChexSystems report that barred access to checking. In these kinds of screening systems, even a single overdraft charge can easily turn a short-term issue into a multi-year obstacle. At the end of 2025, approximately 6% to 7% of U.S. households were unbanked, according to Bankrate, largely because of prior banking problems.

So, Alltru turned ChexSystems off.

“This was before the Bank On movement even reached St. Louis,” Verner says. “Altru was already questioning those barriers. Leadership was already asking why.”

Expanding Access Without Increasing Risk

Opening access at scale shifts responsibility inside the institution and can raise questions about risk management, making effective collaboration with finance and compliance teams essential.

“Our compliance manager tracks outcomes closely,” Verner says. “We’ve found people flagged in ChexSystems do not show higher fraud or delinquency rates. The data simply doesn’t support the perceived risk.”

Alltru regularly evaluates programs and purposefully keeps guardrails flexible. For example, the credit union noticed an issue involving fraud through ATM deposits among its youth workforce program. So, it pivoted.

“Instead of shutting it down, we increased our fraud education efforts, reduced ATM withdrawal limits, and added monitoring,” Verner says. “We didn’t stop the program. We refined it.”

Alltru takes the same creative approach to lending. Traditional secured loans tend to rely on upfront cash or collateral. That’s a barrier for members without savings. Alltru’s credit builder loan removes that requirement, although it doesn’t release funds immediately to reduce risk while still helping members build credit. In practice, however, early usage indicated Alltru needed to recalibrate the loan.

“Initially, it was $1,000 over 12 months,” Verner says. “We realized some members couldn’t handle that.”

Today, the Missouri cooperative offers loan options as low as $300 because even $30 every month can help members without creating excess financial strain. Alltru has also gradually leaned into relationship lending, and half of its first-time auto loan borrowers don’t have a credit score.

“You start with good intentions,” Verner says. “Then you refine based on real needs.”

Empowerment As An Organizational Mindset

Financial empowerment starts with understanding the consequences of credit union decisions. Verner spends time in the community working alongside nonprofits and listening to members outside the branch to identify where well‑intended policies still limit access.

“Being in the community, working with nonprofits, seeing real challenges brings up more questions,” she says. “It forces you to ask why.”

Of course, asking why only matters if it changes how people make decisions, which is why financial empowerment at Alltru also rests on a shared understanding of what it means to struggle, how strain shows up in everyday life, and who needs support.

“The rising costs of housing, groceries, and auto loans have impacted everyone,” she says. “This isn’t someone else’s problem. This is about our neighbors, families, and even our coworkers.”

That awareness changes decisions, from product design to flexibility at the margins. As a credit union focused on empowerment, Alltru is willing to look for ways to preserve access instead of restrict it.

Forward-thinking credit unions are leading with financial wellbeing. Alltru FCU’s evolution from education to true financial empowerment reflects a broader shift across the industry. The Member Engagement and Financial Wellbeing Consortium, led by Callahan & Associates in collaboration with Gallup, helps credit unions embed financial wellbeing into strategy, product decisions, and culture. Through shared insights and peer collaboration, participating credit unions are aligning around what drives real member confidence, engagement, and long-term growth. Learn how the Consortium is helping credit unions turn empowerment into measurable impact.

The post Why Financial Empowerment Matters More Than Financial Literacy appeared first on CreditUnions.com.

Consumer credit card debt rose by 116% year-over-year in 2025, according to a 2026 study from WalletHub. A full 78% of that increase came during the fourth quarter. With gas prices up more than 30% since the start of the Iran war and other prices expected to remain high, consumers could be reaching more for their credit cards in the months to come.

TOTAL OUSTANDING CREDIT CARD DEBT (ADJUSTED FOR INFLATION)
FOR U.S. CONSUMERS | DATA AS OF 12.31.25
SOURCE: WALLETHUB

STRATEGIC INSIGHTS

• At $1.33 trillion, total credit card debt is only slightly lower than its $147 billion peak in 2008.
• From a credit union industry perspective, credit card loan growth closed out 2025 at 3.41%, according to data from Callahan & Associates. That’s well below the fourth quarter 2022 peak of 15.88% but in line with historical norms since the Great Recession.
• Adjusted for inflation, average U.S. household credit card debt topped $11,561 at the end of 2025, a 2.3% increase from the prior year.
• The average member balance at credit unions was $3,403 at year-end. Some of that difference could be tied to lower interest rates at credit unions, which compound into comparatively lower balances over time.
• The rise in credit card debt is augmented by increases in the BNPL space. According to a PYMNTS series, 38% of credit union members say they would use BNPL if their credit union offered it. That figure nearly doubles for millennial and Gen Z members, nearly half (48%) of whom say they’ve already used outside providers like Affirm, Klarna, and others.
• It’s unclear how many credit unions currently offer in-house BNPL solutions. A March 2024 study from PYMNTS and Velera found just 1.5% of credit unions offered the service.

The post Consumers Are Financing The Future Any Way They Can appeared first on CreditUnions.com.

Credit unions committed to serving members with limited or impaired credit operate at the intersection of access, trust, and protection. Fraud management plays a critical role in that mission, but many accept fraud losses that are neither inevitable nor sustainable.

Internal portfolio analysis reveals a striking disparity across the industry. While the average fraud loss rate hovers around 25%, some institutions operate with loss rates as low as 6% without restricting access, increasing false positives, or eroding member trust. The difference between these outcomes: strategy.

The Financial Impact Of The Gap

To understand what this gap means in practical terms, consider a mid-sized credit union with $7 million in annual dispute dollars.

• At a 25% fraud loss rate, approximately $1.75 million of that total reflects loss tied to process inefficiencies, delayed resolution, and misclassified disputes.
• At a 6% loss rate, that loss drops to roughly $420,000.

That’s a difference of $1.33 million every year. For institutions operating on thin margins, this gap can materially impact financial performance.

Why Credit Unions Feel This More Acutely

Research by Cornerstone Advisors provides context for why many credit unions struggle to close this gap. Credit unions earned an average fraud experience score of 75, placing them squarely in “C-grade” territory and trailing several large issuers.

Only 5% of credit union cardholders rated their fraud experience an A, while nearly a quarter graded it a D or F.

Notably, the biggest gaps appeared in:

• Provisional credit issuance.
• Investigation and documentation collection.

These steps are where friction accumulates through manual handoffs, inconsistent timelines, limited self-service, and poor visibility into case status. While more than half of cardholders believe their disputes are resolved within a week, Cornerstone’s research shows 1 in 5 experiences resolution times longer than two weeks, often due to operational bottlenecks rather than investigative complexity.

For credit unions serving subprime or financially stressed members, these delays carry outsized consequences. Access to funds matters more, patience is thinner, and trust is more fragile.

Fraud Experience Is A Relationship Decision

Cornerstone’s data underscores a critical reality: fraud resolution quality directly shapes member behavior. Among cardholders who rated their experience an A:

• 87% reported increased confidence in their institution.
• 39% increased card usage.
• 81% were more likely to add products.
• 83% said the relationship was strengthened.

By contrast, poor experiences drive disengagement, reduced card usage, and attrition.

Proof The Gap Is Real And Fixable

Rogue Credit Union’s experience illustrates what’s possible with the right operational strategy.

“We were seeing about $2.5 million in fraud losses a year,” says James Richie, vice president of payment services at Rogue Credit Union ($4.2B, Medford, OR). “Now, with Quavo, we’ve been able to cut that by close to 60–70%.”

Institutions closing the gap between 25% and 6% loss rates consistently focus on:

• Parallelized investigations instead of linear workflows.
• Clear, auditable provisional credit handling aligned with Reg E and Reg Z.
• Real-time visibility into case status for staff and members.
• Fewer handoffs and less rework across dispute teams.

Protecting The Mission By Eliminating Waste

Serving the underserved does not require absorbing losses as a cost of compassion. Every avoidable fraud dollar represents longer wait times for real victims, fewer resources for prevention, and less capacity to support members when it matters most.

Credit unions that modernize fraud operations are discovering that lower losses, stronger relationships, and better experiences are not competing priorities. They are the same outcome delivered through better strategy.

Explore the full Fraud Experience Differentiator from Cornerstone Advisors x Quavo.

Steve Durney is VP of Partnerships & Alliances at Quavo. Contact him at steve.durney@quavo.com.

Quavo is a technology partner and strategic advisor helping financial institutions resolve fraud and disputes faster and more transparently. Its award-winning platform automates the dispute lifecycle end to end, enabling institutions to reduce losses, ensure compliance, and strengthen customer trust at scale.

The post Serving The Underserved Without Accepting Preventable Fraud Losses appeared first on CreditUnions.com.

When the NCUA released its fourth quarter 2025 performance data, the headlines practically wrote themselves.

Total assets in federally insured credit unions climbed $126 billion over the year, reaching $2.43 trillion. Total loans outstanding increased $76 billion to hit $1.72 trillion. By any measure, these are strong numbers; the kind that make for reassuring board presentations and confident annual reports.

But aggregate numbers like these have a way of flattering the industry’s biggest players while quietly obscuring the experience of everyone else. And for small to midsize credit unions, the experience of 2025 lies beneath the flashy headlines.

The Real Story

The NCUA’s own data tells a more complicated story when you shift from aggregate totals to median performance, which is a more accurate reflection of the typical credit union, not the large institutions that pull averages upward.

At the median, loans outstanding declined 0.2% over the year ending in the second quarter of 2025. The year prior, this same figure had grown 2.4%. To me, this reads more like a meaningful reversal and less like a subtle shift. Additionally, loan balances declined at the median in 25 states and the District of Columbia during that period. By the third quarter, the median had barely recovered, registering just 0.3% growth, with loans still declining in 19 states.

Auto loans — a foundational product for credit unions of every size — told an even bleaker story. Systemwide, auto loan balances fell $10.4 billion in the first quarter of 2025, another $6.5 billion in the second quarter, and $3.4 billion more in the third. The loan-to-share ratio, a reliable barometer of lending momentum, slid from 84.0% to 83.2% over the course of the year, a signal that deposits were either growing faster than loan demand or that loan demand was being suppressed.

For a smaller credit union serving a regional community, numbers like these show up in month-end reports, in budget conversations, and in the anxiety of knowing your loan portfolio isn’t growing the way it needs to.

The Headwinds Are Getting Stronger

The lending slowdown of 2025 didn’t happen in a vacuum, and unfortunately, it appears the forces behind it are intensifying.

Elevated interest rates throughout much of 2025 kept borrowing costs high and dampened consumer appetite for new debt. This was particularly true in auto loans, where monthly payments climbed to levels that stretched household budgets.

The resumption of student loan repayments redirected some income that may have otherwise supported borrowing. On top of that, rising delinquency rates signaled that many members were already managing more debt than was comfortable.

And now, in early 2026, a new layer of pressure has arrived. Fuel prices have spiked sharply, up nearly 80 cents per gallon in recent weeks amid geopolitical disruption in the Middle East. For the small business owner running a delivery route, the contractor fueling a work truck, and the farmer getting product to market, the math got a lot harder almost overnight.

These are, in many cases, credit union members. And they’re going to need somewhere to turn.

The economic headwinds hitting communities right now aren’t theoretical. They’re showing up at gas stations, in business checking accounts, and at kitchen tables.

3 Ways To Go On Offense

But here’s the thing: The institutions that will come out of this period with stronger loan portfolios and deeper member loyalty are the ones choosing right now to be proactive, visible, and useful. Here’s where to start:

1. Eliminate Friction Between Your Member And A “Yes”

When a member needs money to cover a bill, buy groceries, or handle an unexpected expense, the credit union that makes it easiest to get there wins. It’s that simple.

That means taking a hard look at your current lending process and asking a question with a potentially eye-opening answer: how many steps stand between a member and funded loan?

If the answer involves a branch visit, a lengthy paper application, or a multi-day wait for a decision on a loan they almost certainly qualify for, then you’re creating an opening for a competitor to walk right through.

The most effective credit unions right now are delivering pre-approved loan offers directly through online and mobile banking. These are offers members can accept in a single step, with e-signature handling the closing instantly. No friction. No waiting. No reason to look elsewhere. Don’t think of this as merely an opportunity to upgrade member experience. We’re talking about bolstering your entire loan growth strategy.

2. Use What Your Core Already Knows

Your data is one of your most underutilized assets. Every transaction, every payment history, every account relationship your members have with your credit union is a signal. And when you read those signals intelligently, you stop guessing and start strategizing.

The credit unions gaining ground on loan growth right now aren’t blasting generic offers to their entire membership. They identify the right members (i.e., the ones most likely to need and qualify for a specific product) and reach them with an offer or solution that feels relevant instead of random.

They’re also leaning on relationship history as part of the lending decision itself. A member with years of timely payments, steady deposits, and deep roots in your credit union tells a story that a credit score alone can’t fully capture. Use that story. In fact, your core should make that kind of insight easy to access and act on. If it isn’t, then it may be time to have a conversation.

A potential member who doesn’t know you offer small business loans or doesn’t realize your rates beat the bank down the street has no reason to walk through your door when they need help.

3. Be Loud And Proud In Your Community

Unfortunately, credit unions have to constantly fight an awareness battle that banks simply don’t have to. A potential member who doesn’t know you offer small business loans or doesn’t realize your rates beat the bank down the street has no reason to walk through your door when they need help.

But have no fear, this is an entirely fixable situation.

Right now, with small businesses facing rising fuel costs and tightening margins, there is a genuine, urgent opportunity for credit unions to raise their hands and be heard. Feature your small business loan products. Talk openly about lower rates, fewer fees, and the kind of personalized service a regional bank or national lender structurally cannot provide.

Run a local TV spot featuring a member success story that you helped create. I’m talking about the restaurant that stayed open during an economic downturn, the contractor who bought a second truck, or the mom-and-pop retailer fighting back against a regional competitor. Put your rates on social media. Be specific. Be local. Be loud.

The community you serve is looking for a partner right now, not a transaction. Credit unions are built to be that partner. But they have to show up for people to know it.

The credit union model was designed for exactly this kind of moment, and CU*SOUTH is built to help your credit union make the most of it. We power credit unions across America with a browser-based, all-in-one core loaded with data and analytics, relationship-driven capabilities, and streamlined lending tools — including 1-Click Loans, which puts pre-approved offers directly in members’ hands through online and mobile banking.

Danny Phillips is senior vice president of client experience at CU*SOUTH. He has more than 20 years of credit union experience and expertise in lending, risk analysis, underwriting, and team development. With a track record of creating new loan products, building departments from the ground up, and optimizing operations across lending, compliance, and marketing, Danny is dedicated to driving growth and enhancing client experience at CU*SOUTH.

As a 100% credit union-owned CUSO, CU*SOUTH provides the full operational engine for credit unions nationwide. The organization delivers a modern, browser-based core platform seamlessly integrated with back-office essential services — accounting and CFO services, IT and collections — managed by experienced credit union veterans.

The post The Lending Lag Is Real, And Here’s What Smaller Credit Unions Can Do About It appeared first on CreditUnions.com.

Consumer lending insights in the video come from TruStage’s 2025 Consumer Lending Preferences Study. 2025, March. TruStage^TM is the marketing name for TruStage Financial Group, Inc. its subsidiaries and affiliates. Corporate headquarters are located in Madison, Wis.

LPS-8248416.1-0825-0927

The post Understanding The Lending Recall Gap appeared first on CreditUnions.com.

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CDFI grant funding has helped Innovations Financial Federal Credit Union ($651.9M, Panama City Beach, FL) expand access to capital for small businesses in and around the Florida Panhandle.

A pre-COVID grant helped the credit union launch a microlending program that provides up to $50,000 to small businesses in its market and continues to make a difference in the region.

The Problem

The bank landscape in Florida has substantially shrunk since the Great Recession. Many small and mid-size local banks have closed their doors or merged with larger entities, leaving a void in the commercial lending space.

Hurricane Michael in 2018 exacerbated the problem when it decimated the Panama City area and dealt a death blow to local businesses across the region.

The Solution

With CDFI grant funding, Innovations Financial implemented a microlending program for small businesses and entrepreneurs starting new businesses. The credit union made up to $25,000 in unsecured funds available and up to $50,000 available for loans secured by homes, equipment, or real estate. Both loans were available to borrowers with a minimum 650 credit score and business plan proforma or documented LLC.

“None of these are loans you would make under traditional financing,” says David Powell, chief operating officer. “Because of the small dollar amount, it truly is the mom and pop shops. It’s the guy working at a company and doing a side gig who wants go out and do his own thing. It’s the husband and wife who want to start a side gig.”

The credit union can offer a term loan or a line of credit for the $25,000 option as long as borrowers meet the minimum 650 credit score and other stipulations. It prices those loans between 10.5% and 14.5%. The collateral-secured loans it prices at market rate.

Loan applications have been evenly split between new and existing members, and some applicants have told loan officers they were referred by their bank because the institution couldn’t make the loan.

The Results

Although the national economic picture has been rocky, Powell says Florida’s economy behaves somewhat differently because of the heavy influence of tourism and the military.

“If you boil it down to the Panhandle, we’re even more insulated than the rest of the state,” the COO says. “Then boil it down to Bay County and the surrounding counties, and we’re even further insulated.”

According to Powell, steady economic growth in the past decade spurred on by people and businesses moving into the region has helped fuel the microlending program. The credit union has made more than $8 million in microloans since 2018, and with a default rate of just 6%, the program has been “wildly successful.”

“There’s hardly anyplace small businesses can go to get money to start up, so we were absolutely fulfilling that need in all the areas we serve,” Powell says.

A partnership with the Small Business Development Center, offered through the University of West Florida, has helped drive applications. Many startups and small businesses work with the center on business planning, and the center frequently refers those entrepreneurs to the credit union.

And even when some borrowers have gone out of business, they’ve continued to pay back the credit union, says Powell.

“It’s been pleasantly surprising to see the level of commitment,” he says. “I think what saved us is that 650 credit score cutoff, which I would allege tells someone’s character to a good degree. Even if they go out of business, they understand they’re on the hook and don’t want their credit to suffer. And because the loans are generally small, they can generally afford to pay it.”

Lessons Learned

A proactive collections process has contributed to the program’s success. Rather than waiting until the end of a 15-day grace period to reach out as the credit union does on normal business loans, credit union representatives call these borrowers to check in within a few days of a payment’s due date.

“These small business loans are generally not sophisticated borrows,” Powell says. “Lots of times they just forget to make the payment and need a reminder. We’ve found it to be a best practice to start collections with these microloans very early in the past-due process. We don’t want to let them get behind because once they’re behind they can’t catch up.”

The partnership with the Small Business Development Center has been crucial to the program’s success, Powell says, and he advises other credit unions to investigate similar offerings in their own markets. But even with that help, credit unions need to be sure they understand applicants’ business plans as well.

“Be sure you understand how to manage and control that risk,” he says. “How to read people’s credit reports, how to understand what they’re telling you in the business plan, how to collect on the back end, and so forth.”

The post Innovations Financial Bets Big On Small Business Lending appeared first on CreditUnions.com.

Top-Level Takeaways

• The old stigma of poorly constructed properties is fading. The design and amenities of modern manufactured homes can stand head-to-head with site-built homes.
• Lower cost of entry is attracting some younger borrowers, but older consumers also find them appealing as an option for downsizing.
• Just like indirect auto lending, relationships with the owners of manufactured home parks are crucial to success in this space.

A new-construction home with granite countertops, stainless steel appliances, and a built-in community, all for the (comparatively) low six figures?

This isn’t grandma’s manufactured home.

As sky-high real estate prices and an intimidating interest rate environment put traditional homeownership out of reach for many buyers, more consumers are turning to manufactured housing. In response, many credit unions are increasingly focusing on manufactured home loans to meet evolving member needs.

“This is the epitome of what we do as credit unions,” says Rob Overton, SVP of lending at Rogue Credit Union ($3.8B, Medford, OR), which has been in the manufactured home space since the early 2000s. “We try to find good solutions to help our members on their journey to financial wellbeing.”

Rogue dabbled in manufactured housing lending for years, but demand has skyrocketed. According to Overton, Rogue wrote four such loans in 2017. That jumped to 130 in 2025.

Some of that increased demand is tied to pressures in the broader real estate market, but Overton and other credit union lenders also cite the dramatically improved quality of such homes, especially in comparison to the stereotypical manufactured home.

“These homes are coming with granite countertops, quartz, all-electric, designed for ceiling fans, a fireplace — all those amenities you’d see in a traditional home are now being offered in a manufactured home,” explains Robyn Mannone, chief consumer lending officer at APG Federal Credit Union ($2.6B, Edgewood, MD).

Quality, Cost, And Community

Although manufactured homes are often positioned as a more affordable alternative to traditional housing, they aren’t insulated from broader market forces, says John Walters, general manager of manufactured home lending at Credit Human Federal Credit Union ($4.4B, San Antonio, TX). Better quality amenities plus rising costs for lumber and other construction materials all have also contributed to rising prices.

They’re up by how much? Think the regular real estate market is rough? Wait until you see how much manufactured home prices have risen by comparison. Dig into the data in “The Affordable Housing Crisis Goes Beyond Single-Family Homes.”

Still, these properties can be appealing to borrowers who want to downsize from larger homes and are choosing manufactured housing based on location and features rather than price alone. APGFCU and Rogue both work with manufactured park owners that cater to communities for residents age 55 and older.

Credit Human is the industry’s largest player in this space, and those communities have been a natural fit for the membership, which tends to skew slightly older, according to Walters.

“A lot of people have equity in their homes,” the GM says. “They’re either paying cash or putting a good down payment down on manufactured housing, so they reduce their monthly payments along with reducing their footprint.”

At Eagle Community Credit Union ($369.7M, Foothill Ranch, CA), California real estate prices have helped make these properties especially appealing.

“Residents are determining that manufactured homes are a viable alternative to purchasing traditional homes,” says Robert Thompson, chief lending officer. “We are seeing both first-time buyers and retirees seeing manufactured homes as an excellent option to homeownership.”

Oregon Governor Tina Kotek has to increase homeownership by at least 30,000 units by 2030 to address a housing shortage. That’s expected to be a boon for Rogue, where demand increased following wildfires that destroyed homes throughout its market.

“A lot of things are coming together that are going to see this product become a more accepted middle-of-the-road bridge, not a niche,” Overton says, noting that this could be a first step for some when they leave apartment life for a single-family unit. “It’ll be like a starter home, but much more luxurious and for the same type of money.”

Terms And Conditions Vary

There’s no one-size-fits-all model when it comes to pricing and underwriting manufactured home loans. At APGFCU, the loans fall under consumer lending and follows similar guidelines around debt-to-income and loan-to-value ratios. The organization requires money down for new and used properties and maxes out loan length at 20 years. It also offers home improvement loans, which helps owners gussy up the homes before they go back on the market.

“The parks want the property to be quality so they can turn them and they get another person in there,” Mannone says.

Credit Human uses risk-based pricing and because its manufactured home loans don’t require PMI, they carry a slightly higher interest rate than a traditional mortgage. Even with that higher rate, however, these homes often present a lower upfront cost of entry and fewer barriers to a down payment when compared to site-built homes.

But affordability alone doesn’t dictate how aggressively Credit Human pursues the space.

“Some of our competitors require billions of dollars a year in originations; we’re not that,” Walters says. “We can pick and choose where our production comes from and how much we need. The demand is out there; it’s just a matter of how much we want to be a player in it.”

Rather than marketing directly to consumers, Credit Human primarily works as an indirect lender, working directly with manufactured housing dealers and park owners. It has also created loan advisor roles that allow the credit union to have conversations with members and dealers while staying in compliance.

At Rogue, loans of up to $300,000 are available for a maximum term of 25 years. Overton says although leadership might discuss longer terms, a quarter-century seems to be the sweet spot.

“It’s rare that we get much pushback there because the payment is still very manageable,” he notes.

Like Credit Human, Rogue employs risk-based pricing for manufactured housing loans and set rates that are competitive with others in the market. According to Overton, credit quality has been strong, with little difference between applicants for manufactured and site-built homes.

“It used to be stereotyped that [manufactured home] people were low income, maybe had some credit problems,” he says. “That’s all gone by the wayside. Credit quality is equal across the board. This is an asset class that scares a lot of lenders, and it really shouldn’t.”

Overton says Rogue hasn’t charged-off any loans in this space in the past 24 months and delinquencies are in the single digits.

Location, Location, Location

The owners of manufactured home parks make their money by hosting those properties and generally charge tenants rent for that land. But lot rent has risen dramatically in some states, putting the squeeze on some manufactured homeowners or would-be borrowers.

Credit Human takes lot rent into consideration in the underwriting and approval process, weighing that against the applicant’s broader debt-to-income ratio. In some cases, that’s leading to denials.

“The biggest challenge people still have is affordability,” Walters says. “They’re more affordable, but they’re not free.”

According to Mannone at APGFCU, one key difference between manufactured homes and traditional mortgages is that the credit union runs manufactured home loans as title transactions rather than deeds. In that case, lot rent basically takes the place of annual property taxes, she says.

The parks APGFCU partners with also must approve the borrower based on their own stipulations. That process happens simultaneously with loan approval.

Lessons Learned

Similar to how lenders manage dealer relationships with indirect auto lending, sources say partnerships with home park owners and real estate agents are crucial to success in this space.

“It lends itself to being specialized,” says Walters, noting that Credit Human has three regional offices across the country, and approximately 20% of its manufactured housing team has been working in that space for more than two decades. “It helps our portfolio because we understand the business.”

Eagle Community’s Thompson suggests approaching manufactured home loans similar to old-fashioned mortgage lending.

“Just like with traditional mortgages, every single deal is unique,” he says. “Every borrower, every mobile home park, every park approval process is different. This is not a cookie-cutter operation, and you need the right people and processes in place to be successful.”

The biggest lesson from many lenders in this space might simply be not to overlook the opportunity.

“There’s a whole gamut of folks who we serve through this product,” Mannone says. “We don’t try to say it’s for first-time buyers or it’s a lower-income borrower. We present it to our community and our realtor partnerships as a homebuying option.”

The post Manufactured Homes Help Close The Housing Affordability Gap appeared first on CreditUnions.com.

The latest credit union performance data is available now through Callahan’s FirstLook program, and Financial Performance Week on CreditUnions.com gives readers a look at the latest trends and their impact on your cooperative.

Backed by fresh Call Report data and Callahan’s peer-driven benchmarks, this week’s coverage goes beyond surface-level results to examine the forces reshaping balance sheets, member behavior, and long-term sustainability. The Callahan analyst team has been hard at work connecting 2025 performance outcomes to the strategic decisions credit unions will face in 2026, highlighting where pressure is building, where resilience is emerging, and what leaders should be watching most closely as conditions evolve.

In the days ahead, keep your eyes peeled for:

• How a declining interest rate environment could impact the credit union earnings model.
• Our two-part series on prices, including how affordability pressures are stifling household budgets and the direct impact that’s having on member behavior and the credit union bottom line.
• A look at the latest shifts in asset quality and one big, uncomfortable question: Are credit unions ready?

What about your credit union? What industry performance metrics are you keeping an eye on? Let us know how these trends are impacting your members and your credit union, and we might feature your story on CreditUnions.com.

The post The Numbers That Matter Most To Credit Unions appeared first on CreditUnions.com.

The nationwide affordability crisis has become an inescapable issue for credit union members, affecting how they borrow, spend, and plan for the future. From housing and vehicles to education and everyday essentials, the cost of daily living is on the rise, leaving many households struggling to save, qualify for loans, and manage debt.

In today’s economy, it is essential that credit unions balance member support with sustainable lending practices that ensure continued operations for those in need.

Housing Prices Reposition The Real Estate Portfolio

Housing prices are climbing faster than wages in many regions, and members are struggling to save for down payments, qualify for mortgages, or comfortably manage monthly payments if they do buy.

FIRST MORTGAGE GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

At the same time, other residential real estate products — namely HELOCs — have surged. Existing homeowners are increasingly tapping equity for not only home improvements but also to pay down student loans, consolidate high‑interest debt, and cover unexpected expenses.

New Pressures Drive New Lending Plays

Higher sticker prices, rising interest rates, and longer loan terms mean monthly car payments now consume a larger share of already-strained household budgets for longer.

NEW AND USED AUTO LOAN GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

Considering the affordability concerns with new cars, used auto — traditionally the more budget-friendly option — remains the dominant vehicle loan. However, even the average used car loan balance has increased 3.0% at credit unions since last year, suggesting new loans for used auto are larger than they used to be. That can be a major barrier for members in need of new transportation.

Swiping Through The Squeeze

Credit cards have become a financial lifeline for credit union members as inflation continues to chip away at household purchasing power. With essentials costing more each year, members are paying with plastic to bridge gaps in their monthly budgets. As such, average credit card balances were up 2.2% annually $3,406 at year-end 2025.

AVERAGE CREDIT CARD LOAN BALANCE AND GROWTH
FOR U.S. CREDIT UNIONS
SOURCE: CALLAHAN & ASSOCIATES

The Ripple Effects Of Rising Costs

These are simply two drops of water in the bucket of debt that has the potential to really soak members. As pressures compound across housing, transportation, education, and everyday spending, many members operate with thinner wallets and greater exposure to unforeseen challenges. That shrinking financial buffer plays a  growing role in asset quality as slower repayment from tighter budgets presents higher delinquency risk.

On the opposing side, these compounding affordability challenges underscore the importance of proactive support as members navigate an increasingly demanding economic landscape.

Affordability pressures might show up first in individual products, but their cumulative impact is ultimately reflected in member behavior and portfolio performance. Credit unions must strive to not only manage risk but also recognize how interconnected cost pressures reshape both financial resilience and lending outcomes.

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