EUGENE, Ore.–Oregon Community Credit Union said it has become the first state-chartered credit union to issue auto asset-backed securities (auto ABS).
As CUToday.info reported, in 2017 NCUA allowed credit unions to bundle loans for sale and to look to the securitization market for liquidity. OCCU said it is the fourth credit union to complete a securitization and the first state-chartered credit union to do so. It is retaining the servicing on the loans.
The $3.4-billion Oregon Community said its $275 million offering includes direct and indirect prime-quality vehicle retail installment sales contracts secured by new and used automobiles, light-duty trucks, sport utility vehicles and vans.
Strong Regional Auto Lender
“This securitization benefits members by building the financial strength of OCCU,” said Ron Neumann, OCCU president and CEO. “This strength allows us to serve more members and supports our ability to provide member benefits such as lower or eliminated fees, additional branches and service centers and enhanced technology such as digital banking and interactive teller machines.”
OCCU, a regional auto-lending leader in the Pacific Northwest, reported it has a managed auto portfolio of $3.4 billion, a 77% year-over-year increase. According to Standard & Poor’s, OCCU is one of the largest credit union indirect lenders in the U.S.
Active in Loan Participations
OCCU said it has also become a leader in participating loans over the last several years, helping with balance sheet flexibility and increased lending capacity while also supporting other credit unions seeking loans to support their balance sheets.
“And now, by entering the securitization space, the credit union will realize the ongoing financial benefit of debt security issuances and the resulting retained equity position and capital leverage,” OCCU said, adding it is also retaining the servicing in this vertical.
OCCU was assisted in the transaction by Stifel, Nicolaus & Company and ALM First.
The Very Best in CU Reporting. Every Morning. At a Price Every CFO Will Love
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com.