Risk appetite and management are an integral part of any credit union's plan, but risk management becomes even more important when entering into member business lending or a loan participation
McHugh said one critical piece of a loan participation
is to know the policies and financial performance of the credit unions that are involved in the transaction.
The process for underwriting the loan is the same whether the credit union buys the loan participation
or whether it underwrites the loan for on its own, he pointed out.
The decrease in net income in the first half of 2006 reflects a smaller reversal of previously recognized provision for loan participation
losses compared to a year ago.
However, its loan participation
arrangements are ting much of the scrutiny.
At March 31, 2006, loan participations
totaled $268 million, the reserve for loan participation
losses was $.
The Alaska Industrial Development and Export Authority (A1DEA) Board approved a loan participation
for a new retail project in Anchorage to Westdahl LLC, for $6,297,750, 90 percent of a $6,997,500 loan brought to AIDEA by Northrim Bank, which originated the loan and is participating with $699,750.
From October 2009 to October 2011, Newcomb negotiated and entered into loan participation
agreements with Northern Piedmont FCU.
She represents commercial banks, REITs, insurance companies and private equity investors in commercial real estate financing transactions and investments, including balance sheet financings; permanent and bridge loan originations; mezzanine financing and other subordinate financings; construction loans; loan participation
, syndications and other co-lender arrangements; and work-outs and restructurings.
The bank was the successful bidder on the loan participation
that closed on May 4, 2010.
If they wish to pursue an opportunity further, they can retrieve complete information from TMAC personnel, who will provide assistance in developing a co-lending loan participation
agreement between the two institutions.
In other words, if a bank sells a loan participation
and then goes bankrupt, would the receiver of the bank be able to pull back the assets involved in the participation to satisfy the creditors of the bank?