Participation Underwriting and Analysis
Purchasing and selling a portion of Member Business Loans (known as participations) has become an effective way for credit unions to either grow or shrink their MBL portfolio. MBL Risk Analytics (MBLRA) has been evaluating participations for credit unions both purchasing and selling since the beginning of this emerging trend.
Although many credit unions have quality internal credit departments or outsource to an underwriting firm such as MBLRA, it is always prudent and recommended that any potential participation purchase be reviewed by a third-party. We provide two services specifically relevant to MBL participations: underwriting and analysis of potential purchase opportunities and preparation of loan participation opportunity memos for credit unions selling a participation.
Each loan participation purchase package includes:
- Pre-screening of any participation purchase opportunity (at no cost to the CU);
- Comprehensive financial analysis prepared to CU specific policies and guidelines;
- Comprehensive borrower and guarantor analysis;
- Full review of all third-party reports, including: credit reports, appraisal reports, and environmental reports/questionnaires;
- A detailed loan package containing all of the above in an intuitive, easy to understand format tailored to the specific requests of each CU partner.
The final product is a complete and comprehensive loan package showing MBLRA prepared project analysis, detailed narrative, and conclusions ready to submit to your loan committee. The package also includes a recommended risk rating of the loan based upon your specific risk rating matrix. Our credit presentation provides all the guidance and action steps you need to make an informed decision on any participation purchase opportunity.
Whether your credit union is the purchaser, or the seller, MBLRA has a product that can assist.
Contact us to learn more about how we can help your Credit Union.