Credit Union Loan Source

The National Automobile Dealers Association is forecasting new and used car sales to remain on the strong course they have followed in recent years. Credit unions now have a unique opportunity to corner this market through the new LEVERAGE partner, Credit Union Loan Source (CULS).

CULS’ deep experience and expertise in the auto lending industry offers investing credit unions the chance to increase revenue by taking advantage of indirect auto loan participations originated through a network of franchise dealers across eight states. Loans are underwritten to uniform credit guidelines for prime loans (640 FICO and above) and are designed to maximize net yields while maintaining acceptable levels of credit risk and loss performance. CULS expertise, state of the art systems and nimble culture offer an attractive option for investing credit unions to grow their loan portfolio with assets that target net yields of 425+ bps inclusive of losses.

Funded loans are pooled together and sold monthly to investing credit unions and due diligence is easily performed by accessing the CULS loan origination system where all the originating documentation including the loan agreements and credit reports are available for review.

Although CULS is a finance company, it benchmarks itself against credit unions for delinquency and loss purposes and is right in line with credit union performance.

To learn more about how CULS may benefit your credit union, please feel free to contact us at

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The advantages to those participating are clear:

  • Operational excellence: Industry expertise, uniform credit guidelines, loan documentation, performance analytics
  • Investors share in the risks and rewards: Each credit union owns a portion of every loan in the pool
  • Portfolio Diversification: Geographic diversification from 8 states as well as asset  class
  • Lower risk loans: Prime lending program, nothing subprime (640+ FICO scores)
  • Transparency: Regulator-friendly program with a long track record
  • Profitability:  CULS targets a net yield of 4.25%+ (inclusive of losses)