#4108: AgFed Partners with LendKey to Diversify Portfolio and Support Overall Loan Growth...

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Tom Bowles, Executive VP, at Agriculture Federal Credit Union (AgFed), and Ryan Giffin, SVP Client Success at LendKey, stopped by the show to share how AgFed has partnered with LendKey to diversify its portfolio and support overall loan growth -- all without requiring AgFed to take on the full responsibility themselves, thanks to LendKey’s Home Improvement Loan Program.

Tom and Ryan talked about how the program includes a thorough onboarding process, borrower profiles, and effective risk management through contractor vetting with positive results regarding significant loan origination and cross-selling opportunities, leading to satisfaction from both parties regarding the partnership's impact.

Q&A summary...
What is the significance of LendKey's Home Improvement Loan Program for credit unions like AgFed?
LendKey's Home Improvement Loan Program allows credit unions to diversify their portfolios and support loan growth without taking on full responsibility, which is crucial for adapting to changing market conditions.
What role does credit default insurance play in LendKey's Home Improvement Loan Program?
Credit default insurance provides coverage for losses on loans, offering peace of mind to participating credit unions by mitigating financial risks associated with delinquent loans.
What trends in borrower credit quality have been observed in LendKey's Home Improvement Loan Program?
The program has attracted borrowers with high credit quality, averaging a FICO score above 780 and household incomes over $140,000, indicating a strong financial profile.
What results has AgFed seen since joining LendKey's Home Improvement Loan Program?
Since April 2016, AgFed has originated over 3,100 loans totaling $181 million, significantly diversifying their risk and enhancing their overall portfolio performance.
How does LendKey's model allow credit unions to adjust their loan commitments based on market conditions?
LendKey's model is based on annual commitments from credit unions, allowing them to adjust their capital deployment based on liquidity needs or market changes throughout the year.
What advice does AgFed have for other credit unions considering LendKey's Home Improvement Program?
AgFed recommends that credit unions looking to diversify their loan portfolios consider LendKey's program, as it requires little marketing effort and fosters strong partnerships.

Check it out and let us know your thoughts. And be sure to watch the entire episode below for all the details.