Nearly a dozen Illinois credit unions are now taking advantage of a loan program offered through a CUSO developed by Georgia Credit Union Services and three Georgia CUs, according to a CUInsight article.
Up until recently, state-chartered credit unions weren’t allowed to invest in these sorts of loan pools.
The CULS Loan Program is offered through LSC and Credit Union Loan Source, which was organized and chartered in 2004 by Georgia Credit Union Services, Inc., Delta Community Credit Union, Atlanta Postal Credit Union and Georgia’s Own Credit Union.
“The CULS participation model originates prime and super prime loans and provides credit unions with low-risk, quality assets and excellent returns in comparison with alternative investment options,” according to CU Insight. “Further, the CULS model allows geographical and manufacturer diversification of portfolio risk and credit risk over thousands of consumers.”
The CULS Loan Program launched in Illinois in January 2017. The pilot program was offered in conjunction with the Illinois Credit Union League’s legislative efforts to pass an amendment to the Illinois Credit Union Act which would allow state-chartered Illinois credit unions the opportunity to invest in pools of loans irrespective of the membership of the loan borrowers, according to the CUInsight article.
“We are thrilled to be able to offer our loan participation program to credit unions in Illinois,” said Kevin Usiatynski, EVP/ chief strategy officer at CULS. “We feel like the program is a great fit for Illinois and are excited to see this partnership grow.”