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Credit Union Loan Trader™
Connecting Buyers and Sellers of Member Business Loan Participations
Powered by the Pennsylvania Credit Union Association, Credit Union Loan Trader is a secure online marketplace connecting buyers and sellers of Member Business Loan participations.
Filling Market Needs
As the result of regulatory limits or the need for portfolio diversification, credit unions sell Member Business Loan participations. Finding buyers for those loans is no longer a challenge for sellers. Credit Union Loan Trader provides for the match up of like-minded buyers and sellers.
Selling Loans
Credit unions wishing to sell a loan complete a series of questions about the loan being placed for sale, (the “Details”). The fields containing the answers to these questions, then become the preliminary data which a potential buyer will first assess the desirability of the loan for possible purchase.
Once the loan questionnaire is completed, all of the underlying financial and loan documents necessary for a potential buyer to re-analyze the loan are uploaded and stored safely to the Credit Union Loan Trader website. Access to this highly sensitive data is controlled only by the seller. Potential buyers contact sellers through the website to request access to this data. Once contact is made, a seller can approve or deny access based on multitude of factors, including information contained in a “User Profile”, a questionnaire completed by anyone accessing the site. Review of this “User Profile” allows sellers the opportunity to determine if a potential buyer is “a good fit” for the purchase of their loan prior to release of confidential data.
Allowing sellers the on-line ability to exchange the large amount of complex information necessary to make a lending decision speeds up this exchange process and cuts down on overhead associated with the exchange of this information.
Buying Loans
Credit Union Loan Trader lists participations available for purchase by industry type, collateral type, collateral location, and other critical factors. This allows buyers the ability to narrow their search for loans that fit within their own lending criteria.
Once the search has been narrowed, additional loan specific “Details” can be viewed on-line with the click of a mouse. If after this closer look, the buyer remains interested, they may request permission to review the underlying financial and loan documents placed securely on the site by the selling credit union. Once access has been granted, the credit union then can perform a regulatory required re-analysis or re-assessment of the credit; including an assessment of the credit quality and loan documentation to make sure it fits their own credit union’s lending criteria.
Credit unions desiring to purchase loan participations contact the seller directly, and negotiate the terms of a participation agreement and make the necessary financial arrangements for acquisition of a fractional share of the loan.
Accessing the Service
Under the terms of a licensing agreement, Credit Union Loan Trader is available to any league-member credit union or CUSO located in the Mid-Atlantic region.
To request a licensing agreement, simply click on the “sign me up” link on the Credit Union Loan Trader home page, or simply send an e-mail with your contact information to loantrader@pcua.coop.
Credit Union Loan Trader Tutorial
Subscription Pricing
Credit unions may have unlimited access to Credit Union Loan Trader during the 2009 calendar year for a $500 subscription fee. CUSO’s may have unlimited access to Credit Union Loan Trader during the 2009 calendar year for a $750 subscription fee. Up to two individual user IDs are provided as part of the basic subscription fee; additional user IDs are available at a cost of $200 each.
Additional Information
For additional information on Credit Union Loan Trader, contact Molly Snody, Director, Business Advisory Services, Pennsylvania Credit Union Association, at 800-932-0661, extension 5209.
For more information or to get started, please contact your Association Representative at 800-932-0661, or e-mail CUSolutions@pcua.org.
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- Business Development / Sales
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Central Pennsylvania
Russell Evans
Assistant Vice President,
Business Development
russell.evans@pcua.org
800-932-0661 x 5330 -
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Eastern Pennsylvania
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Zack Stecher
Account Executive
zack.stecher@pcua.org
717-903-3102
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Western Pennsylvania
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Monika Scott
Sr. Account Executive
monika.scott@pcua.org
717-503-7348
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