Welcome to the Twenty Twenty Analytics Blog!

I would like to personally welcome you to the Twenty Twenty Analytics Blog. The purpose of our blog is to stay up to date on credit union standards, regulations and hot topics to provide you with the information you need to know to stay current. I would encourage you to click here to subscribe to the blog to receive updates when new information is posted. Subscribing will not opt you in to receive any promotional material from our website.

Have a question? Have you come across information that you would like to know more about? Email me! Your question may be the topic of our next blog.

Thanks for reading!

-Dan Price, CPA

Twenty Twenty Analytics Blogger

0

Lessons Learned from Previous Market Corrections

So about the actual strength and health of the current U.S. economy – where are we? Are we coming up on an economic boom? Are we still in recovery? Or are we in a new form of economy where this is really as good as it is going to get? It’s pretty difficult to determine which direction the needle is pointing, even after Read Full Article

0

Credit Union Considerations for an Increasing Interest Rate Environment

Stop me if you’ve heard this one before: interest rates are finally going to go up this year. I know, I know… we have all heard this, and have been talking about it for most of the past 2 or 3 years. And while rates were increased from historic lows in December 2015 and December 2016, those increases are comparative to Read Full Article

0

What we have learned from your Credit Union Peers in 2016

With 2016 entering its final stretch, the Twenty Twenty Analytics team asked ourselves: what have we learned this year? Well, I think the first thing we learned was that people get very upset over elections (Seriously, remember when social media was just cat videos and pictures of people on vacation?). But, fortunately, that’s not the topic of this blog.

What the Twenty Twenty team was actually interested in was taking an aggregate look at Read Full Article

0

Using the Housing Affordability Index to Forecast Home Values

In recent years, the Real Estate industry has seen prices rebound and, due to the economic recovery, unemployment rates have been drastically reduced from the peak of the recession.

However, with uncertainty still swirling around interest rate expectations, and with stagnant household income growth over the past decade, there is a fundamental question facing Credit Unions: what does the future of the housing market look like?

The Housing Affordability Index (HAI) – A model that can help

To help forecast the housing market, it is important for Credit Unions to evaluate the impact that changing economic conditions will have on their portfolio’s performance. One tool that can help model changing economic conditions is the Housing Affordability Index. Read Full Article

0

How Data Analytics Can Shape Strategy and Create Value

You’ve made the decision—you’re all-in: You are finally going to start using data analytics to achieve your portfolio management goals.

Congratulations! Pull up a chair, you are officially part of the “big data,” “fintech,” 21st century. Nothing will stop you now from taking on the world and blowing your goals out of the water!

Now, back in reality, one problem remains Read Full Article

0

Twenty Twenty Analytics Featured in Credit Union Magazine

Credit Union Magazine recently featured an article titled “Analytics help Credit Unions Manage Portfolio Risk” by Twenty Twenty Analytics Senior Analyst and Blogger Alan Veitengruber where he explains how understanding the drivers of default risk and loss given default are central to managing your lending portfolio. Read Full Article

0

Portfolio Trends: Does your Auto Portfolio have a Blind Spot?

In late-2015, Twenty Twenty Analytics noticed a trend in our client automobile portfolios: current auto collateral values were decreasing at an increasing rate compared to previous years. After some internal discussion, we decided to have a chat with our auto valuation business partner, Black Book Lender Solutions. Black Book informed us that, according to their data, the average depreciation on autos in 2015 for the past 5 model years was 13.2% with 7.2% of that depreciation occurring in Q4. The 13.2% depreciation rate in 2015 contrasts with the 11.8% depreciation rate observed in 2014. To simplify, lost value on vehicles was 1.4 percentage points higher in 2015 compared to 2014, and over half of the value lost in 2015 occurred in the final 3 months of the year.

Read Full Article

0

Proactive Credit Line Increases: Hidden Value in your Credit Card Portfolio

Have you ever been in that Sales & Marketing meeting? The one where phrases such as “grow the pie” and being “disruptive in the marketplace” dominate the conversation. My “favorite” part of that meeting is when some “genius” speaks up and says:
Read Full Article

0

What Does the September Jobs Report Mean for Lenders

Last week the United States Department of Labor dropped the September jobs report, the results of which were much to the dismay of anyone with a stake in the United States economy. With the competing ebb and flow of positive and negative information since the end of the Great Recession in the 3rd quarter of 2009, it is somewhat difficult to know what economic indicators such as unemployment actually mean for credit risk. Below are a few highlights of the most recent job numbers, and the relevant takeaway for lenders:

Read Full Article

0

Guidance on HELOCs Nearing End-of-Draw Periods

Call it Christmas in July, because we all just received the gift of an additional ALLL consideration. On July 1, 2014 Interagency Guidance on Home Equity Lines of Credit Nearing Their End-of-Draw Periods was released.

Read Full Article