LoanStreet Summarizes Deal Terms to Assist Purchasers in Assessing Loan Participations
To effectively market and sell a significant volume of consumer loans, financial institutions, including credit unions, often aggregate large numbers of individual loans into pools. To simplify the analysis of these pools by potential buyers, the pools are generally composed of loans with similar characteristics such as asset type and credit quality.
Whether an institution is constructing a pool of loans for potential sale, or reviewing a pool for potential purchase, it is important to understand and analyze the fundamental financial, structural and credit characteristics of the pool and the loans that comprise the pool.
To assist purchasers in assessing loan participations, LoanStreet has prepared a summary memorandum for standard deal terms that highlight the important attributes of a pool.