Credit unions wanting to buy and sell loan participations haveanother resource to turn to.

Unity Xchange will use DebtX, a loan liquidator, to permitsellers to upload loan documents and market them through a websitethat only qualified buyers can access, according to the newCUSO.

Unity Xchange said itwill perform due diligence to ensure that the lenders listing loansare certified as having the expertise and track record tounderwrite high-quality loans. Non-certified lenders may list loansprovided certified lenders re-underwrite the loans to confirm theloans meet the minimum underwriting standards.

Initially only business loans will be listed. Mortgage loans will beconsidered as the next type of loan available through theexchange.

“We have been very successful meeting a high business lendingdemand in our community but we need to sell loan participations more efficiently to continue to meet thatdemand. We are excited about the opportunity to connect to a widerange of buyers both within and outside the credit union industry,”says Peter Van Graafeiland, vice president of business lending atthe $2 billion Coastal Federal Credit Union in Raleigh, N.C., oneof the credit union owners of Unity Xchange.

Andy Pistoria, CEO of the $109 million Tri County Area FederalCredit Union in Pottstown, Pa., another of the credit union owners,says, “We expect to be buyers in this new marketplace. Like manycredit unions we need net income and the ability to buy loan yieldfrom certified lenders is a great asset to us.”