Episode 74: Unique Credit Union Lending with Mark Ritter
Summary
From the average consumer's perspective a bank and a credit union may offer the same products, and appear the same when standing in the building. But a bank and a credit union have very different lending criteria, a different mindset, and well, report to different people as stakeholders. My guest today is Mark Ritter, CEO of Member Business Financial Services. Mark and I discuss why a Credit Union may be a better option for landlords in this ever-changing environment.
Listen to full episode :
Meet Our Guest:
Mark Ritter is the CEO of Member Business Financial Services (“MBFS”). He is a credit union industry veteran with a focus on helping real estate investors and small business owners. MBFS was formed in 2008 and is currently owned by thirteen credit unions with a mission of helping credit unions fund more loans to real estate investors and small business owners in their communities.
This Week’s Blog Post:
Hello everyone, Dr. Jen here! In today's episode, we're diving into the world of credit union lending with Mark Ritter, a top expert in credit union services. We'll explore how credit unions differentiate from banks and what unique opportunities they offer, especially in real estate and business lending.
Understanding Credit Unions vs. Banks
Key Differences
Credit unions, unlike banks, operate as not-for-profit financial cooperatives. They're owned by members, not shareholders, which influences their lending practices and priorities, focusing more on community benefits rather than profit margins.
The Role of Member Business Financial Services (MFS)
Supporting Credit Unions
MFS, led by Mark Ritter, helps credit unions provide more efficient and affordable services to their members. They enable smaller credit unions to offer big-ticket services like real estate and business loans by pooling resources for greater efficiency and reach.
Regulatory Landscape
Safety and Regulation
Both banks and credit unions adhere to stringent regulations ensuring safety and soundness. The main difference lies in the back-office financial regulations, but consumer-facing protections and insurance are virtually identical.
The Future of Interest Rates
Market Predictions
Mark shares insights on the current economic climate, predicting that interest rates have peaked and might soon stabilize, affecting both savings rates and lending conditions.
Credit Unions in Real Estate Lending
Navigating New Challenges
Mark discusses the nuances of lending for multifamily construction and purchases, emphasizing the importance of understanding cash flow coverage in current economic conditions.
Personal Approach in Credit Union Lending
Building Relationships
Credit unions take a personal approach in lending, focusing on understanding a borrower's entire financial picture and goals, which allows them to offer tailored financial solutions.
Thank you, Mark, for such an enlightening discussion on credit union lending! For those interested in exploring credit union services, reach out to Mark Ritter via his website or LinkedIn. If you found today's show helpful, please leave a review to help others find us. Join me next week for another insightful episode on real estate and finance!