PHILADELPHIA – Three East Coast credit unions have launched a new CUSO called UnityXchange that is creating a trading platform where credit unions and banks can solicit and buy into loan participations based on member business loans.
The CUSO will use technology developed by Debt Exchange, Inc., known as DebtX, to create a uniform platform for exchanging information and pricing data on loans, according to Guy Messick, the Philadelphia lawyer who specializes in developing CUSOs. DebtX, which sells distressed loans, has been used by, among others, NCUA to sell its portfolio of hundreds of Florida properties obtained in the failure of three credit unions.
MBLs will be posted on the DebtX platform and both credit unions and banks will be able to buy participation interests – known among banks as syndications, said Messick.
Buyers will be able to just click through the postings to find the right loan to buy, according to Messick, who said other types of loans will be considered for trading over the exchange in the future.
The CUSO has been set up by North Carolina’s Coastal FCU, New York’s Corning FCU and Pennsylvania’s Tri County Area FCU.
The new market can be found at unityxchange.com.
