Loan Participation Program

Catalyst Corporate offers a Loan Participation Program that is open to all credit unions. This program brings together credit union originators that want to sell loans with credit union buyers that want to purchase an interest in a pool of loans. The services Catalyst Corporate provides include packaging and marketing available loan pools, hosting due diligence information in a secure environment, and monthly remittance and reporting services after the transaction is completed. The Loan Participation Program fills an important need for member credit unions in the management of their balance sheets, while allowing these valuable assets to remain in the credit union industry.

Features & Benefits:

  • The program facilitates credit union management of balance sheet liquidity, risk and key regulatory ratios.
  • Strategic challenges, such as excess liquidity, slow loan growth and limited loan portfolio diversification, are mitigated.
  • Financial performance may be enhanced.
  • Credit unions have access to high quality assets at attractive yields compared to investment alternatives.
  • The program provides a comprehensive one-stop shop for all aspects of the process.
  • Catalyst Corporate’s loan pool review packages include detailed loan pool information and analysis for buyers to use in their due diligence process.
  • The Loan Participation Program employs a straightforward “standardized” process to manage the steps for buying and selling loan participations.
  • Catalyst Corporate provides a secure online platform for hosting and managing due diligence information and documentation.
  • Loan pools are made up of member automobile or first lien mortgage loan portfolios.
  • Information concerning new loan participation loan pools for sale is available under "Resources" below.
  • Catalyst Corporate consummates the contracts, processes the settlement and provides monthly reporting and remittance services.
  • The Loan Participation Program includes various monthly remittance and reporting functions, including generation of detailed monthly reports to buyers, and the transfer of funds to buyers’ accounts, among others.