What types of loans are eligible for loan participation with Southwest Corporate?
A-rated, new and used automobile loans, sport utility vehicle loans, and light truck loans a credit union has extended to its members.
What percentage of a credit union's loan pool would Southwest Corporate purchase?
Southwest Corporate will purchase between 50% and 90% of the outstanding balances of the approved loans.
What is the minimum dollar amount for each loan participation?
$4,000,000.00 is the minimum dollar amount of loans that Southwest Corporate will purchase.
Does Southwest Corporate assume any credit risk in the participated loan pool?
The originating credit union retains all of the credit risk by either providing full recourse on the loans or by maintaining a reserve account with Southwest Corporate.
The originating credit union also retains servicing of the loan pool.
How are the purchase price and terms determined?
The purchase price and terms are determined on a case by case basis but are based on the current market conditions, servicing costs, and related risk factors.Visit www.swcorp.org/rates_loan.asp to see current loan participation pricing.
