Banks View CU Loans as Tasty Chum: Print Preview
- BB&T latest to buy a credit union’s auto loan portfolio.
- Banks with glut of deposits are seeking more loans.
- Most credit unions are not interested in selling, experts say.
When it comes to auto loan portfolio acquisitions, some might see credit unions as the equivalent of little fish being circled in waters full of sharks–banks and other lenders.
Typically, credit unions are the sellers and are likely to be open to sale opportunities in the secondary market, Arora said. Because of their local community ties and reputation for helping members with their financial needs, originating auto loans has become a staple, he said.
Nevarez believes, in general, auto loan portfolio acquisitions have slacked off. Some notable exceptions are banks such as Santander Consumer USA, Bank of America and subprime finance companies that have acquired large auto loan portfolios going back two to three years.