LOAN PARTICIPATION PROGRAM

LPX Logo with taglineCatalyst 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?

  • Can Selling Loan Participations Help Credit Unions Outperform The Industry?

  • Can Buying Loan Participations Generate Income?

  • Can Buying Loan Participations Help Manage Asset/Liability Ratios?

  • How Can Catalyst Help You Buy & Sell Loans?



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Resources & News

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Need Liquidity? The Loan Participation Exchange Is Your Ticket

by Catalyst Corporate | Feb 17, 2023
With tightening liquidity, many credit unions are struggling to meet consumer demand for loans while positioning themselves for future growth and safety. One way credit unions can access adequate liquidity is to sell loan pools. Loan participations allow credit unions to manage their balance sheet composition, concentration limits, loan-to-share ratios, interest rate risk and liquidity levels.

How the Loan Participation Exchange works

Catalyst Corporate’s loan participation team works closely with credit unions throughout the loan selling process. The Catalyst sales team is your credit union’s key to unlock and utilize the innovative, online Loan Participation Exchange (LPX). LPX is designed to help credit unions execute fast, safe and secure transactions in an online marketplace.

With Catalyst as your partner, the LPX is simpler than ever to use. If needed, the Catalyst loan participation team can also help with the monthly remittance process, reducing the ongoing back-office responsibilities that come with selling loans. With the benefit of the LPX as the gateway to the loan participation market, credit unions can enhance balance sheet management, have greater control over loans and focus on serving their members.

The loan participation program

For years, Catalyst Corporate has been serving the loan participation market by facilitating billions of dollars in loan participations and by working with credit unions of all asset sizes across the industry. Furthermore, this program keeps 100% of the funds within the credit union industry, ensuring the benefits are all retained by credit unions. By doing this, credit unions grow more and continue living out the people helping people mantra.

Amidst the current, ever-changing economic environment, it’s important to have options. Whether or not a credit union is ready to execute a loan participation, having the tool ready and available when the time is right, allows credit unions to keep the option in their back pocket.

Secure your loan-selling ticket with LPX

Despite the economic environment, credit unions are still buying and selling loans. If your credit union needs liquidity, Catalyst makes selling loans simple and easy. The LPX allows credit unions to access the resources they need without having to devote all their time and resources to solving the problem.

Secure your loan-selling ticket by contacting the Catalyst Corporate team. Our team is ready and eager to show your credit union what LPX can do for your balance sheet.