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<p>OVERLAND PARK, Kansas – Network Liquidity Acceptance Company, LLC, a CUSO of U.S. Central, is now posting daily auto loan portfolio rates to let CUs know the market value their auto loan portfolios would have on the secondary market, namely what they could get from NLAC. NLAC was created to help CUs free up liquidity. NLAC can do whole loan purchases of CU loans. So far it has purchased about $500 million in auto loans. Its business was hurt in 2001 because liquidity was abundant and there were hordes of 0% financing offers in the market. The new posting of daily rates will help CUs estimate the value of their auto loan portfolios and can even help in how they price auto loans said Karen Pease, NLAC’s managing director. For example based on NLAC’s current auto rates, if a CU sold an auto loan portfolio with a gross coupon of 5.5% it would get 98 cents on the dollar from NLAC. If a credit union wanted dollar-for-dollar valuation, it would need to sell a portfolio with a gross coupon of 6.7% based on current rates, said Pease. Pease said NLAC is looking at getting more involved with mortgage loans. It has considered credit card portfolios, but won’t be engaging in those in the near future. “We have looked at it but at this point and time we didn’t think it was an asset class we wanted to pursue heavily. A lot of credit unions are selling off their portfolios to completely get out of the business,” said Pease. She said NLAC’s role is more to help CUs free up liquidity to meet member loan demand. Southwest Corporate awards Shuttle trip as part of EBP promotion Southwest Corporate Federal Credit Union’s Eric Schneider (left) congratulates Warren Dixon, who is the winner of the Electronic Bill Payment launch contest. Dixon has his eyes set on a scheduled May 2 launch of Space Shuttle Endeavour. He and his family will be traveling to Florida as the winner of a contest Southwest Corporate Federal Credit Union organized to highlight the launch of its new Electronic Bill Payment service.</p>

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