Now that the NCUA has approved changes to the loan participation rule, Catalyst Corporate Federal CreditUnion said it is ready to roll out a new program.

The corporate credit union based in Plano, Texas, first revealeddetails on launching an agent loan participation program back in February.

Catalyst Corporate said it will act as the facilitator, bringingthe buyers and sellers together in the loan participation process,but will not participate in the loans. Loan packages are comprisedof consumer loans such as auto loans and first mortgages ratherthan commercial loans.

The corporate credit union said it will outline the offer forsale, locates buyers, and gather and provide the due diligenceinformation on a secure website for buyers to review.

Catalyst Corporate then coordinates the processing of documentsbetween sellers and buyers, processes the settlement transaction,and provides monthly reporting and remittance services, thecorporate said.

While loan participations are not new, the corporate's newservice opens up the market to a potential nationwide network ofcredit unions, said Jeff Hamilton, vice president of lending atCatalyst Corporate.

“It is no secret that larger credit unions are capturing aconsiderable percentage of the loans and could run into cap limits,while smaller credit unions have capacity and a need for loans,”Hamilton said. “We think Catalyst Corporate's loan participationservice is well-positioned to help credit unions cooperate in a waythat ultimately helps all credit union members.”