To help credit unions interested in selling and buying loans,Catalyst Corporate Federal Credit Union said it is planning tolaunch an agent loan participation program.

Jeff Hamilton, vice president of member credit at CatalystCorporate in Plano, Texas, said the loan participation programwill connect credit unions that want to sell loans with creditunions that want to purchase an interest in a loan pool.

'This will help both parties in managing their balance sheets. Sellers create liquidity, while buyers have the potential toearn higher yields,” Hamilton said.

While Catalyst Corporate will serve as an agent providingdetailed review packages to prospective buyers about the pools forsale, Hamilton said, buyers must still perform their own duediligence and make independent purchasing decisions. CatalystCorporate said it will not guarantee loan performance.

The corporate credit union said it will perform certain monthlyremittance and reporting functions, such as the generation ofdetailed monthly reports to buyers and the transfer of funds tobuyers' accounts.

Buyers and sellers are not required to be Catalyst members butmembers will be given first priority on loan participation transactions, Hamilton said.

Over the next few weeks, more information about loan pools forsale will be posted on Catalyst Corporate website as it becomesavailable.

Hamilton, who recently joined the corporate, replaces PamHensley, who retired in December 2012 after 19 years of service. Inhis position, Hamilton oversees Catalyst Corporate's lendingactivities with member credit unions and serves on the corporate'smember credit committee.