Credit unions wanting to buy and sell loan participations have another resource to turn to.
Unity Xchange will use DebtX, a loan liquidator, to permit sellers to upload loan documents and market them through a website that only qualified buyers can access, according to the new CUSO.
Unity Xchange said it will perform due diligence to ensure that the lenders listing loans are certified as having the expertise and track record to underwrite high-quality loans. Non-certified lenders may list loans provided certified lenders re-underwrite the loans to confirm the loans meet the minimum underwriting standards.
Initially only business loans will be listed. Mortgage loans will be considered as the next type of loan available through the exchange.
“We have been very successful meeting a high business lending demand in our community but we need to sell loan participations more efficiently to continue to meet that demand. We are excited about the opportunity to connect to a wide range of buyers both within and outside the credit union industry,” says Peter Van Graafeiland, vice president of business lending at the $2 billion Coastal Federal Credit Union in Raleigh, N.C., one of the credit union owners of Unity Xchange.
Andy Pistoria, CEO of the $109 million Tri County Area Federal Credit Union in Pottstown, Pa., another of the credit union owners, says, “We expect to be buyers in this new marketplace. Like many credit unions we need net income and the ability to buy loan yield from certified lenders is a great asset to us.”
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