Business

Why Americans Are Seeking Loans from Credit Unions in Record Numbers

Published

3 years ago

July 4, 2021

During the Covid-19 pandemic and its aftermath, many Americans have relied on loans to keep their personal and business finances healthy. However, a recent trend has developed, indicating that how Americans are seeking loans may be unique compared to how they did so in the past. Specifically, rather than seeking loans from traditional commercial banks, many are instead choosing to apply for loans with credit unions.

A credit union is typically a local financial institution whose services and products overlap substantially with that of a bank. However, most commercial banks are profit-making institutions beholden to shareholders. Credit unions, on the other hand, exist to serve a community’s needs instead of earning a profit.

Each member of a credit union has equal voting rights. Instead of following rules and adhering to standards dictated by executives who aren’t members of the community, credit union boards consist of volunteers elected by all members who wish to cast a vote.

These differences influence the customer experience in ways that have recently made credit unions more appealing to loan-seekers than banks may be. Perhaps more importantly, research indicates that particularly in times of crisis, credit unions are more inclined to approve loan applications. One recent study indicates that, while banks often become hesitant to approve loans during crises, during the Great Recession and pandemic, many credit unions not only continued to loan money to members, but actually increased their lending.

This may be a reflection of the basic nature of credit unions. They’re established to provide a necessary service, much like a fire department or local hospital. According to Jordan van Rijn, senior economist for the Credit Union National Association, “During periods of risk and uncertainty, banks tend to pull back a lot more on lending and just get a lot more conservative. But credit unions as part of their mission is just to continue to serve the members.”

It’s also worth noting that loan interest rates at credit unions tend to be lower than they are at banks. This is another reason many Americans may have opted to seek loans from credit unions in recent months. They don’t want to exacerbate their financial woes by taking out loans with prohibitively high interest rates.

Additionally, many have already found that credit unions offer similar benefits even when national crises aren’t occuring. For example, some who’ve been turned down by numerous banks for home mortgages find that credit unions are more willing to work with them to offer alternatives to traditional mortgages.

Credit unions don’t provide loans and mortgages more willingly than banks because they engage in predatory lending. On the contrary, their low interest rates on loans highlight how they exist to support their members. Often, members have greater luck receiving loans from credit unions than from major banks because the local quality of the service, combined with the fact that credit unions don’t have a responsibility to earn a profit, allow credit union decision-makers to make these particular decisions based on a more personal understanding of a member’s situation. At a bank, decision-makers are required to follow the same procedures from one branch to another.

Many speculate that credit unions will also continue to grow in popularity after the pandemic. The way they served their members during a time of crisis has generated significant loyalty that may last well into the future.

Business

Private Listings by Harold X. Clarke: A New Approach to Fine Real Estate

Published

2 weeks ago

December 16, 2024

Matthew Wiles

Photo credit: Private Listings by Harold X. Clarke.

Byline: Andi Stark

Private Listings by Harold X. Clarke, a real estate platform operating across Hawaii, is rewriting how properties are bought and sold in the region. Unlike larger firms reliant on public listings and mass marketing, Private Listings’ strategy prioritizes personalization, privacy, and meticulous curation of ultra-high-end, off-market properties, including oceanfront estates, gated community residences, and architectural masterpieces.

Harold Clarke, founder of Private Listings, describes their method as one that rejects “cookie-cutter solutions in favor of understanding the nuances of both buyers and sellers.” This approach has resonated with ultra-high-net-worth individuals (UHNWIs) seeking refined and discreet real estate transactions.

The Hawaiian real estate market remains a hub for global investors, with the median price for a single-family home in the state reaching $900,000 in 2024, according to the Hawaii Association of Realtors. Within this competitive landscape, Private Listings is building up to be a trusted name for properties that extend beyond luxury into generational investments.

Challenging the Industry Norms

Private Listings deliberately avoids the conventions of large-scale real estate firms. By focusing on fewer, higher-value properties, the company ensures that each transaction is treated with the same level of care and confidentiality.

Public listing platforms, while effective for broader markets, often expose sellers to unnecessary attention or unqualified inquiries. For Clarke, this model is misaligned with the needs of UHNWIs. “Privacy isn’t a luxury for our clients—it’s a necessity,” Clarke explains.

This philosophy has led Private Listings to handle some of Hawaii’s most significant real estate transactions, including off-market properties valued at over $40 million. Its success is not measured by the volume of listings but by the depth of trust built with clients, many of whom return for subsequent transactions.

Adapting to Changing Client Demands

While Private Listings maintains a foundation of traditional practices, the firm also recognizes the evolving needs of its clientele. The global real estate market is increasingly influenced by concerns over digital security, with a 15% rise in data breaches targeting high-net-worth individuals in the past three years, according to cybersecurity firm NortonLifeLock.

To address these risks, Private Listings employs rigorous screening for potential buyers and uses secure platforms for communication and transactions. The firm’s “by invitation only” model ensures that clients remain protected from the pitfalls of public exposure. Clarke notes, “Our goal is not just to sell homes but to create an environment where clients feel safe and confident during every step of the process.”

The Human Element in Real Estate Transactions

Despite advancements in technology, Private Listings firmly believes that real estate transactions cannot be reduced to algorithms or automation. Unlike firms that depend heavily on online data aggregation, Private Listings emphasizes human connection and insight.

The company’s sales strategy integrates personalized client interactions, in-depth market analysis, and years of experience navigating Hawaii’s unique real estate ecosystem. Clarke’s background in managing family assets and his global perspective is significant in shaping this essence.

Future Directions for Private Listings by Harold X. Clarke

As Hawaii continues to attract global attention, Private Listings aims to expand its influence within the state while maintaining its core principles. The company is currently developing a new platform to streamline services for UHNWIs, blending their demand for discretion with seamless access to Hawaii’s finest off-market properties.

Additionally, Private Listings is strengthening its ties with local communities, recognizing that sustainable growth benefits both the company and the islands’ ecosystems.

Private Listings by Harold X. Clarke has set itself apart in Hawaii’s real estate scene by moving away from the typical mass-market approach. Through a mix of traditional values and modern sensibilities, the firm continues to define what it means to transact ultra-high-value properties with integrity and care.