July 28, 2003


  • Very interesting.Explained a lot I did not know about credit unions
  • I've done participation loans since the end of '98. The key point that you have missed is due diligence that the buying credit union should do on the portfolio they're buying into. In addition a review of the selling credit unions financials, available on this site will give you a good feeling as to the operation and safety and soundness of the credit union you are doing business with. We sell all our loans with full recourse. Basically the buying credit union is assuming a share of the interest rate risk and extension risk in the portfolio for a predetermined discounted percentage of the interest collected. Thanks for writing the article. Gerd Henjes, Pres./CEO Countryside FCU