Empowering Credit Unions Through Strategic Loan Participations
Full Suite of Services to Improve Credit Union Performance
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Loan Participation and Loan Buying Programs
About Corsica Consulting Group
About Corsica Consulting Group
Corsica Consulting Group is a leading provider of loan participation services for small credit unions. We have a proven track record of success, with over 30 years of experience in the financial services industry. Our team of experts has a deep understanding of the credit union landscape and the unique challenges that small credit unions face.
Our Mission
Our mission is to empower small credit unions to achieve their financial goals through strategic loan participation investments. We provide comprehensive solutions that are tailored to the specific needs of each credit union, helping them to:
• Improve financial performance
• Enhance risk management
• Ensure regulatory compliance
Our Expertise
We offer a wide range of loan participation services, including:
• Policy Creation and Board Approval: We develop comprehensive loan participation policies and provide all the necessary materials for board approval, ensuring a smooth and efficient process.
• Loan Participation Purchases: We identify and evaluate potential loan participation opportunities, conduct thorough due diligence, and handle all aspects of the purchase process.
• Monitoring, Analyzing, and Reporting: We provide ongoing monitoring and analysis of your loan participation portfolio, with regular reports that track key performance indicators.
• Loan Participation Splitting: We specialize in splitting loan participations into smaller pools, allowing small credit unions to access investments that would otherwise be inaccessible.
Our Track Record
We have a ten-year portfolio record of over $350 million in purchases with less than 100 basis points (lifetime) of credit losses. This portfolio has also outperformed the NCUA average loan yield by 200 basis points over the same period.
Our Commitment
We are committed to providing our clients with the highest level of service and expertise. We believe in building long-term relationships with our clients, 1 based on trust and mutual respect.
Benefits
Benefits
• Boost Your Bottom Line with Loan Participation Purchases
• Unlock Hidden Profits: Loan Participations for Credit Unions
• Maximize Your Portfolio: Expert Guidance on Loan Participations
• Improved Financial Performance:
o Increase your ROA by 25% to 100%.
o Generate an additional 25% in annual revenue.
o Diversify your loan portfolio and reduce risk.
• Higher Yield on Idle Funds:
o Put your excess liquidity to work by investing in high-performing loans.
o Earn Superior Returns on funds that are in passive investments.
• Access to Our Expertise: Corsica's specialized knowledge:
o Our team has decades of experience in loan participation transactions.
o We handle all the complex details, from due diligence to legal documentation.
o Benefit from our proven strategies for successful loan participation investments.
Five Most Frequently Asked Questions From Potential New Loan Participation Programs
Five Most Frequently Asked Questions From Potential New Loan Participation Programs
What are the benefits of loan participation purchases for my credit union?
What are the benefits of loan participation purchases for my credit union?
Increased yield on assets: How participations can generate higher returns than traditional investments.
Portfolio diversification: How buying participations can help mitigate risk and improve asset quality.
Access to new markets: How credit unions can gain exposure to different loan types or geographic regions.
Improved liquidity management: How participations can provide a source of liquidity if needed.
What are the risks associated with loan participation purchases?
What are the risks associated with loan participation purchases?
• Credit risk: The possibility that the borrower may default on the loan.
Interest rate risk: The risk that rising interest rates will reduce the value of the participation.
Liquidity risk: The risk that the credit union may not be able to sell the participation quickly if needed.
Operational risk: The risk of errors or fraud in the administration of the participation.
Legal and regulatory risks: Ensuring compliance with all applicable rules and regulations.
Concentration risk: Having a high concentration in either loan types or geographic locations.
How do I find and evaluate loan participation opportunities?
How do I find and evaluate loan participation opportunities?
Credit unions often need help with sourcing and due diligence. Corsica provides turnkey programs to:
Identifying potential sellers: Accessing networks and platforms to find suitable participations.
Conducting due diligence: Analyzing loan documentation, evaluating borrower creditworthiness, and assessing collateral.
Negotiating pricing and terms: Securing favorable terms for the credit union.
Monitoring, Analytics, and Reporting
What are the regulatory requirements for loan participation purchases?
What are the regulatory requirements for loan participation purchases?
Navigating regulations can be complex. Clearly outline how Corsica helps credit unions comply with:
NCUA regulations: Specifically, Part 701.22, which governs loan participations. Part 701.23 governs Eligible Obligations.
Other applicable regulations: Such as those related to capital adequacy, lending limits, and risk management.
Board Education and Policies
What are the Corsica Consulting Group's services?
What are the Corsica Consulting Group's services?
Policy Creation and Board Approval
Loan Participation Purchases including Due Diligence
Monitoring, Analyzing, and Reporting
Loan Participation Splitting
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