DENVER– Gateway Services Group and Mortgage Liquidity Solutions reported they are celebrating the sale of over $1 billion in loan participations for their credit union clients. Both companies are multi-owned CUSOs and work with credit unions of all sizes across the country.
GSG and MLS specialize in working with both the loan participation buyer and seller to ensure a thorough and efficient review and sale, the companies said. As of Dec. 31, 2016, the combined loan participation volume for both CUSOs was an impressive $1.04 billion sold for their credit union clients.
“Credit unions know that loan participations are an important tool to manage liquidity and diversify portfolios, but finding the right opportunities and fully analyzing them can be a challenge,” stated Judy Sandberg, who manages the loan participation activity for both GSG and MLS. “Our CUSOs are known for the high service level we provide specifically for credit unions. We understand the industry and what is required to ensure a quality participation.”
The majority of GSG and MLS’s growth has come from referrals and repeat business. The CUSOs’ business model is unique in the way they support each credit union client over the whole life of the participation. “We don’t exit once the sale is closed,” continued Sandberg. “We assist our clients on an ongoing basis by providing annual due diligence materials, resolving questions and supporting the parties if loans need to be modified. We believe in acting as a true partner.”
GSG and MLS are bullish on the outlook for the loan participation market. Loan participations represent an important strategy for credit unions of all sizes and for all loan types. According to Sandberg, credit unions that have not yet explored loan participations should consider adding the topic to their strategic planning process or discussing it at their next Board or ALCO meeting.