Sell to Generate Liquidity
Sales of Available For Sale Securities
Our partnership with CU Investment Solutions, Inc. (ISI) allows our members to sell their “available for sale” securities in the secondary market. The Corporate Agent Program of ISI was developed to provide brokerage opportunities for credit unions within the credit union network. The program employs the use of a licensed dual employee who represents a corporate credit union and its traditional products while offering marketable securities such as U.S. Government Agency, Treasury, mortgage obligations and corporate bonds. The Corporate Agent Program provides nationwide brokerage coverage for credit unions. Southeast Corporate Financial Strategists are licensed agents for ISI.
Loan Participations
Southeast Corporate’s loan participation program matches credit unions with liquidity needs with credit unions having excess liquidity. Southeast Corporate acts as a loan-participation facilitator or "broker" by bringing together credit unions with excess funds with those with increased loan demand. But we don't stop there! We assist the participants in preparing the required paperwork, including policies and procedures. And we also help analyze the loan portfolio and price it.
Southeast’s loan participation is a win-win situation for everyone. The selling credit union avoids using short-term borrowing to fund longer-term loans and continues to meet member loan demand. The credit union buying the loan is able to invest excess liquidity in higher yielding assets offsetting the lower loan demand. The following are some additional benefits worth considering:
- Liquidity stays within the credit union movement
- Loan due diligence is completed by the seller
- The buyer has no risk of loan delinquencies or bankruptcy
- The selling credit union maintains the servicing of the loans, which means maintaining those all important relationships with your members
- Reconciliation is simple
In order to participate in the loan participation program, the seller must have at least a $500,000 pool of loans to sell. An individual buyer can purchase up to 90% of the loan portfolio. The buyer must be able to underwrite the type of loans within the pool. In other words, if your credit union’s loan policies do not authorize mortgage lending, you would not qualify to purchase a pool of mortgage loans.
