Shared loan risks and the challenges of increased regulatory scrutiny are a few of the highlights of a new loan participation white paper.

According to the CUNA Lending Council publication, the benefits of loan participations include being a source for selling loans to keep under the 12.25% member business lending cap, geographic and loan type diversification, and an average loan yield potentially three times the amount of the average investment. However, loan participations “are more complex and when the loan goes south the misery of hefty dollar losses is shared with all.”

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