CU Loan Source FAQs

Q:  Who can participate in the program?

A:  State chartered Credit Unions as well as banks can participate in CULS pools.

Q:  What approvals are required to participate in the program? (NCUA, Board, underwriting?)

A:  Each credit union is required to obtain regulatory approval from the NCUA and, depending on the state, may need to seek approval from their state regulator as well. The credit union may also need to take a formal vote to their Board.

Q:  What are the minimum commitments?

A:  The minimum monthly commitment amount is $250,000. We do require that investors sign a 6 month Commitment to Purchase and provide a 12 month Intent to Purchase.

Q:  Can we change our commitment?

A:  We try to be as flexible as possible, we can make adjustments to commitments with 30 days’ notice prior to commencement of a pool.

Q:  Who originates and services the loans?

A:  CULS controls the entire lifecycle of the loan, from origination to serving and collections.

Q:  How frequently are pools sold?

A:  Loan pools are originated on a monthly basis. Each month, a pool closes and there is a settlement of all loans that were purchased that month.

Q:  How does the credit union perform due diligence on the pool of loans?

A:  There is a structured process by which each credit union is able to perform audits on each monthly pool. During the onboarding process, you will be given access to the Defi Loan Origination System as well as a file sharing site called ShareFile. ShareFile contains all of the reporting and information needed to conduct monthly audits.

Q:  Are these carried as loans or investments on the credit union’s books?

A:  Investment in CULS pools are carried as loans. They are recorded on the Participation Loan line on the credit union’s call report.