Loan Participation Program

LPX Logo with taglineCatalyst Corporate offers a Loan Participation Program that is open to all credit unions nationwide. As the leading credit union loan participation program, credit unions benefit from an extensive community of buyers and sellers on the Loan Participation Exchange.

The Loan Participation Exchange is an online platform where loan participation sellers can offer their loan pools to an unparalleled source of potential credit union buyers. The platform provides loan participation buyers a safe and secure environment to view available loan pools, obtain pricing, view loan due diligence, and submit purchase indications all in one place.

How Can Buying Loan Participations Help You And Your Members?

Credit unions buy loans for many reasons, whether it is generating a return on excess liquidity or diversifying assets. By taking advantage of profit sharing, credit unions can ensure they are always participating in strong lending markets, even if their individual market is slowing down.

  • Profit sharing in strong markets
  • Management of excess liquidity
  • Access to higher yielding assets
  • Support for shrinking loan portfolios
  • Reduced geographic risks
  • Diversification

How Can Selling Loan Participations Help You And Your Members?

Loan participations are a key tool available to credit unions and they offer several benefits to sellers. A loan participation sale is more than just turning a pool of loans into cash, it creates bottom line benefits that large loan participation sellers covet. These include:

  • Greater diversity of income channels
  • Increased earnings levels
  • Improved member branding and image
  • Enhanced dealer relationships
  • Stronger access to liquidity
  • Diversification

Visit the Loan Participation Exchange

Can Selling Loan Participations Increase Income?

Yes! Selling loan participations provides several new revenue channels to selling credit unions. The increased lending pipeline offers opportunities for greater loan underwriting fees, the sale process presents the potential to capture sale price gains, and the ongoing member support creates loan servicing income. When undertaken as part of a broader lending strategy, this allows credit unions to outperform similar asset size peers!

Can Selling Loan Participations Help Credit Unions Outperform the Industry?

Yes! Selling loan participations as part of an ongoing strategy not only helps credit unions outperform their peers but also supports the industry at the same time. When credit unions sell loan participations, they help other credit unions by enabling them to invest in an attractive earning asset.

Can Buying Loan Participations Generate Income?

Yes! Buying loan participations is a great way to generate interest income. In addition, loan participations allow credit unions to diversify assets to protect against future income risk. A more diverse portfolio of loans can help mitigate geographic factors, depending on where the credit union is located.

Can Buying Loan Participations Help Manage Asset/Liability Ratios?

Yes! Purchasing loan participations gives credit unions greater control of asset and liability ratios, putting the power in their hands. By fine-tuning their asset/liability ratios, credit unions can optimize performance and safety.

How Can Catalyst Help You Buy & Sell Loans?

Catalyst offers credit unions a turnkey loan participation buying and selling experience. We assist with:

  • Loan Pool Selection
  • Contract Management
  • Pricing
  • Settlement
  • Secure Due Diligence hosting
  • Investor Reporting & Payment Support
  • Investor Identification & solicitation
  • Ongoing Deal Management

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