EUGENE, Ore.—Oregon Community Credit Union (OCCU) Is reporting it has issued its second auto asset-backed securities sale, saying it has become the first credit union to do so within one year of its first such issuance.
The transaction offers $258 million of fixed-rate notes and follows a $275 million offering in October 2022. A majority are senior notes that carry A-1+, P-1, AAA and Aaa S&P and Moody’s ratings, the $3.52-billion OCCU reported.
The credit union described itself as an experienced originator and servicer with strong historical performance, high credit enhancement and attractive risk-adjusted returns.
‘Saleable’ Platform
“Continuing to access the capital markets through the issuance of asset-backed securities augments the credit union’s balance sheet for origination capacity and enables us to more fully capitalize on our successful and scalable vehicle lending platform,” said OCCU Executive Vice President Greg Schumacher in a statement. “OCCU anticipates executing one to two securitizations each year, subject to loan demand, competition and pricing.”
OCCU said its current 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.
OCCU reported it has a managed auto portfolio of $3.1 billion and said it is one of the largest credit union indirect lenders in the U.S. The credit union said it has continuously invested in technology and business development resources, and applies rigorous and disciplined underwriting and loss mitigation practices.
Leveraging ‘Competencies’
“With the successful close of our second transaction in less than 12 months, I am pleased that OCCU continues as an active participant in the capital and structured finance markets,” said President and CEO Ron Neumann in a statement. “As OCCU increases our already prominent footprint in the indirect lending and – now – in the capital market spaces, we are well-positioned to leverage these competencies in pursuit of our overall credit union objectives, designed to optimize our investments back into the OCCU membership and fulfill our vision to enrich lives.”
Just Because It’s Autumn Doesn’t Mean Falling for Schemes to Overcharge You for CU Industry News. Instead, Try This Crisp Offer
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news”” publications!
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—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?