Now’s the Time to Lien into Whole and Participation Loan Programs
August 17, 2022
Whole loan programs can offer more than a package of second-lien loans. If investing in the right solution, a whole loan program has the ability to keep your institution protected with benefits such as loan default insurance, provide loan data analytics, and be fully serviced by a third-party servicer to save your institution time and resources.
Whole loans aren’t the only way to take advantage of today’s interest rates. Participation loans also provide excellent opportunities to diversify your portfolio, boost your bottom line, and help mitigate the effects a recession has on the institution. By chipping in on these pools of loans, your institution can benefit from flexible loan growth and grow loans with low credit risk and above-average yields. Similar to a whole loan program, with the right tools, your institution can generate revenue by purchasing participation loan packages that are managed by top-rated servicing companies, again saving a financial institution the time and resources to hire and train a new employee(s). The ability to gain financial momentum with a chance of reduced risk is especially beneficial for institutions in slower markets or those with a loan-to-share ratio that is lower than desired.
Stay Informed with Resources from Allied Solutions: Join our e-newsletter list!
About Allied Solutions
Allied Solutions, LLC is one of the largest providers of insurance, lending, and marketing products to financial institutions in the US. Allied Solutions uses technology-based products and services customized to meet the needs of over 4,000 banks and credit unions, along with a portfolio of innovative products and services from a wide variety of providers. Allied Solutions maintains several offices strategically located across the country and is a subsidiary of Securian Financial Group, Inc.
Content in the blog posts are the opinion and views of the writer, and don't necessarily reflect the opinions or views of Allied Solutions.