Housing design
Housing design

Lendkey offers secure participation loans for CUs to invest deposits

The pandemic has kept families ensconced in their homes for months now, and many have seen how they can improve their homes to ensure they are more comfortable and user-friendly for parents working remotely, children learning online or just for recreation purposes when everyone needs a break.

That’s why home improvement loans are on the rise as people shelter in place, and make those places more attractive. LEVERAGE partner LendKey’s unique solution allows lenders access to participation loans on a recurring basis, which minimizes on-going diligence and maximizes access to new loan volume. Lenders benefit from fractional ownership in loans, which broadens their portfolio and enhances risk mitigation.

Focused on the $300 billion home improvement market, credit unions can gain access to loans made to prime homeowner borrowers and benefit from multiple tactics to further mitigate risk.

A recent article in CU Today explained how an increase in on-hand deposits is affecting credit unions and why such participation loans are a smart move now. Quoting former NCUA Chairman Dennis Dollar, the article explains, “Capital ratios are going to be impacted by the flight-to-safety deposits, coupled with tighter margins, reduced loan demand and higher provision for loan loss expenses. The ability to manage the balance sheet with a deposit-participation program, similar to how credit unions manage their loan-to-share ratio and liquidity through loan participations, is a strategic option worth consideration.”

Learn more here.

Please contact your LEVERAGE BDC for additional details:

Karen Frazee  karen.frazee@myleverage.com  850.545.4825

Steve Pullara   steven.pullara@myleverage.com    813.404.6877

Donnette Logan   Donnette.Logan@myleverage.com   205.294.4227

Taylor Sheffield  taylor.sheffield@myleverage.com    205.457.4261

Written by
Cara Clark
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About Us

The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

LSCU Mission Statement

To create an environment that enables credit unions to grow and succeed.

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To be the trusted advocate and preferred source of information for credit unions.

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