CUBG Partners With Fintech for Loan Participations
The Community Capital platform is designed to connect buyers and sellers.
CU Business Group has added an online market-making service for loan participations through a partnership with Community Capital Technology Inc.
The four-year-old fintech with offices in New York and Los Angeles has developed a platform where sellers can offer and buyers can find loans without brokers or other intermediaries. It is used by credit unions as well as banks and investors.
NCUA data showed the value of loan transactions rose sharply last year.
Participations that were bought rose 4% to $11.7 billion in 2019 and 40% to $16.3 billion in 2020; sales rose 2% to $9.9 billion in 2019 and 32% to $13.1 billion in 2020.
Full loans bought fell 9% to $5.2 billion in 2019, and more than doubled to $11.4 billion last year. Full loans sold grew 5% to $911 million in 2019 and fell 57% to $390.8 million last year.
CUBG President/CEO Larry Middleman said the partnership will enhance the CUSO’s digital community to help credit unions manage commercial loan balance sheet risk and returns.
“Our team is always exploring new opportunities to leverage the latest service and technology solutions to grow our business and deliver real value to credit unions,” Middleman said. “This partnership with Community Capital is reflective of our ongoing commitment to innovation and finding easier, smarter ways to help credit unions more effectively manage their commercial loan portfolios and achieve their strategic goals.”
Dexter De Mesa, CUBG’s VP of strategic initiatives, said the platform is intuitive and will expand credit unions’ access to deals.
“This partnership will enable us to significantly scale our participations program to better serve our credit union clients’ growing demand,” De Mesa said.
Community Capital CEO Garrett Smith, who founded the fintech in 2017, said the CUBG Loan Marketplace will “transform how community-based financial institutions manage liquidity and grow their loan portfolios through enhanced deal sourcing, decision-making intelligence and streamlined transactions.”
CUBG was founded in 2002 and is owned by six corporate credit unions with more than $20 billion in assets.