Wisconsin credit union buys FILO with plans to expand company's market for pool, participation sales of auto loans.
With the effective date of the revised loan participation rule less than one week away, credit unions and CUSOs have taken another look at their lending programs to see if any adjustments need to be made.
CUs and CUSOs look at lending programs to see if any adjustments needed before Sept. 23 effective date of new NCUA rule.
When done well, loan participations spread income making opportunities to the buyers and provide funds for the sellers to serve more members.
Philadelphia CUSO said through June 30, it closed 169 loans for $39.5 million for its 12 owner credit unions in Pennsylvania and Delaware.
Almost a year to the date since Navy Federal Credit Union launched its commercial participation loan program, the country’s largest cooperative said it is ready for changes mandated by an NCUA rule even after the regulator recently extended a compliance deadline.
The lending environment is undergoing an evolution. The continual entry of new players—especially on the Internet—has sharpened competitive knives that are cutting into credit union income. Business loans are an avenue for lenders to travel, since non-interest income is becoming so critical to survival.
Now that the NCUA has approved changes to the loan participation rule, Catalyst Corporate Federal Credit Union said it is ready to roll out a new program.
This preview from our July 17 print edition takes a look at the NCUA's new loan participation rule.
Rule finalized in June now to kick in on Sept. 23 instead of July 25, with guidance promised by then.