The $482 million United States Senate Federal Credit Union has launched a CUSO to guide credit unions through the loan participation process.
CU Strategic Services LLC will assist CUs of all sizes on the East Coast with the process of buying member business loan participations, according to USSFCU in Alexandria, Va. The CUSO will offer consultative support to develop procedures for loan participations, to solicit lenders and loans and offer an opinion about the validity and/or quality of each opportunity.
"Credit unions are looking to loan participations in lieu of purchasing investments with their excess cash. We are prepared to assist with managing the process and mitigating the risk," said John Hayes, president/CEO of CU Strategic Services.
USSFCU has conducted business practices for 75 years, said Susan Enis, president/CEO of the CU.
"Business loan participations will provide a much needed boost to credit unions searching for portfolio diversification," Enis said.