How a Texas credit union leader drove auto lending during the pandemic

Even when the COVID-19 pandemic's state of emergency began to fade, some industries continued to struggle, such as credit union auto lending. 

Near the end of 2022, car manufacturers were facing a global shortage of microchips that stifled the production of new vehicles alongside rising interest rates, creating a lending challenge for small banks and credit unions and further complicating the indirect lending ecosystem.

For Greater Texas Credit Union in Austin's Valarie Ivester, it was time for yet another in a series of quick pivots. Ivester, assistant vice president of indirect strategy and development for Greater Texas, met with the credit union's executive team to competitively revise policies, rates and other offerings.

Ivester collaborated with the $978 million-asset credit union's development team and its recently acquired artificial intelligence-powered underwriting system to build more encompassing lending models while still mitigating financial risks.

"The current economy requires my daily engagement with our dealers and executive team in order to balance portfolio growth with a more risky lending environment," Ivester said.

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The strategy resulted in about $804 million in total loans and leases in 2022, of which new and used vehicle loans accounted for more than $463 million of that figure according to National Credit Union Administration call report data.

Ivester has responded to multiple challenges since the COVID-19 pandemic hit in March of 2020, affecting everything from loan portfolios to employee performance. 

When the pandemic struck, Ivester quickly put plans for launching an indirect lending program between Greater Texas and local automotive dealerships in motion, virtually recruiting and training underwriting professionals as much of the workforce was forced into a remote environment. Feeling that her team was effective in educating salespeople on what the credit union's requirements were for an eligible consumer, she instituted a new lending system and onboarded 20 dealers as clients.

The end result was close to $9 million in loans within the first seven weeks of the program's launch in November 2020 and the accumulation of more than 75 dealerships that brought in more than $430 million in loans as of the end of 2022. 

"Almost three years later, the credit union has gained a trusted reputation among dealers and borrowers alike. … Once relatively unknown in the automobile finance space, Greater Texas Credit Union is now a significant lender in our major markets," said Howard Baker, chief executive of Greater Texas. "This degree of success would not have occurred without Valarie."

Prior to joining Greater Texas in March 2020, Ivester held similar leadership positions with the $1.5 billion-asset Amplify Credit Union in Austin and the $17 billion-asset Randolph Brooks Federal Credit Union in Live Oak, Texas.

Ivester emphasized the crucial role "openness, trust and respect" played in her work as a Hispanic female creating inclusive teams and relationships with employees and dealers.

"Our inclusive operation as a team carries over to how we work with our partners and their employees; this is how we've been able to grow the indirect lending program so quickly," Ivester said.

Ivester volunteers her time outside the credit union with Greater Austin Hispanic Chamber of Commerce, Habitat for Humanity and the Central Texas Food Bank, and was an ambassador for the El Buen Samaritano Episcopal Mission.