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Even during a pandemic, lenders are looking to grow their MBL portfolios. And while businesses have put some projects on hold during COVID-19, there continues to be demand.
“We saw some projects go on pause, but we continue to grow our portfolio,” driven partly by low rates, says Ethan Nelson, vice president of credit administration at $2.3 billion asset Oregon Community Credit Union in Eugene, Ore., and a member of the CUNA Lending Council Executive Committee. “Overall, we’re seeing demand grow. We’re just being a little more careful with what we’re doing, looking at [the business’] cash flow, and making sure it’s still there.”
Clockwise from left: Frank Perez, University Credit Union; Ethan Nelson, Oregon Community Credit Union; Kevin Nafziger, Park View Federal Credit Union; and Herb White, Sharonview Federal Credit Union.
Herb White, chief lending officer at $1.7 billion asset Sharonview Federal Credit Union in Indian Land, S.C., has some concerns about commercial real estate. “With more workers staying home, the demand for retail/office space is dropping, and that has a trickle-down effect on valuations.”
At the same time, White sees opportunities in the service industry, professional businesses, and healthcare.
Like others, business lenders have had to shift to virtually connecting with borrowers.
“I was an old believer in the handshake, but I’m pleasantly surprised with the amount of collaboration, insight, and work we’re getting from this environment,” White says. “This will have a permanent change in how we work with business members in the future.”
► Click here for more conference coverage from CUNA News. Learn more about the CUNA Lending Council, a member-led professional society for credit union executives, at cunacouncils.org.