DULUTH, GA. (2/7/13)--Catalyst Corporate FCU in Duluth, Ga., said Monday it will launch a major initiative in upcoming weeks--an agent loan participation program.
"The loan participation program will connect credit unions that want to sell loans with credit unions that want to purchase an interest in a loan pool," said Jeff Hamilton, newly hired vice president, member credit at Catalyst Corporate. "This will help both parties in managing their balance sheets--sellers create liquidity, while buyers have the potential to earn higher yields."
More information about loan pools for sale will be posted on Catalyst's website as it becomes available. As an agent, Catalyst Corporate will provide detailed review packages to prospective buyers about the pools for sale, Hamilton said.
However, he emphasized that buyers must perform their own due diligence and make independent purchasing decisions. Catalyst Corporate will not guarantee loan performance. Buyers and sellers are not required to be members of Catalyst, but members will be given first priority on loan participation transactions.
Hamilton spent 13 years at Western Corporate FCU in San Dimas, Calif., including three years as vice president of research and lending. There, he managed the corporate's lending programs, including a loan participation program. He served previously as vice president of portfolio management and as founder/director of the Financial Solutions Group, WesCorp's asset liability management consulting service.