Catalyst Corporate FCU Launches Innovative Loan Participation Exchange

Catalyst Corporate Federal Credit Union has launched a new automated loan participation exchange platform designed to efficiently bring together credit unions wanting to sell loan pools with a nationwide audience of credit union buyers.

The Loan Participation Exchange, known as LPX, is a user-friendly platform built on Catalyst Corporate’s five-plus years of experience in serving the loan participation market and settling more than $3 billion in participations.

“There is a lot of demand to purchase participations from Northwest credit unions, but there’s a limited supply on the seller side,” said John Trull, VP, Regulatory Advocacy at the Northwest Credit Union Association. “A tool designed to facilitate participations could not come at a better time.”

In addition to providing a simple and intuitive experience built around transparency, the platform facilitates selling and buying loan pools and offers reporting and remittance functions. LPX has flexibility to offer customized deals to both specific credit unions and the entire network. It also allows credit unions to view all due diligence information online within the site and offers a clear view of an extensive array of loan stratifications. Credit unions can even sign up to be notified via text when new loan pools are available.

“Simply put, the Loan Participation Exchange is an industry-developed solution that is exclusively focused on serving credit unions,” said Jeff Hamilton, Catalyst Corporate’s Vice President of Member Credit.

Hamilton explained that a key aspect of the loan participation program is that all the funds stay within the credit union industry.

“We believe this helps strengthen the credit union industry, while providing bottom line assistance to individual credit unions.”

LPX is the latest innovation in Catalyst Corporate’s successful loan participation program that was launched in 2014, shortly after the National Credit Union Administration issued guidance on credit union loan participations. Leading up to the launch of its new LPX service, Catalyst Corporate built an extensive network of credit union buyers and sellers.

“Nearly 200 credit unions have bought and sold loan participations since the initial program was established,” said Hamilton.

To learn more about Catalyst Corporate, visit its Strategic Link page or contact [email protected].