FAQ
What does LoanStreet do?
LoanStreet is the leading online loan participation platform that helps lenders achieve their strategic goals of revenue growth and risk reduction. With a frictionless loan participation process, LoanStreet connects lenders to a vast network of potential buyers, enabling financial institutions to scale their non-interest income rapidly and sustainably.
What is a Loan Participation?
Loan participation is the process of selling a percentage of a previously originated loan for strategic balance sheet management purposes. Per National Credit Union Administration (NCUA) regulation, the originating party must retain at least 10% of the loan, but is free to sell participations to as many buyers as they need. Institutions typically sell loan participations to generate liquidity through gains on sale and servicing income, while buyers are most often looking to diversify their balance sheet and deploy excess capital.
What is the minimum AUM required to use LoanStreet’s platform?
There is no minimum size for an institution to sign up. We work with institutions possessing under $400,000 in assets to over $25B.
Who can use LoanStreet’s platform?
Credit unions, banks, and direct lenders of all sizes who are in need of a consolidated software platform to facilitate loan participations and manage their portfolios.
How do I register for LoanStreet’s platform?
Registration is quick, simple and free. Our dedicated sales team will assist your institution through the process to ensure you are set up for success. View our buyer guide or seller guide to learn more before contacting us to get started.
How much does it cost to use LoanStreet’s platform?
Our pricing system varies based on the tools you choose to leverage. We have a fixed, flat fee structure for loan participation sales, as well as optional premium services. Contact our sales team to learn more about transaction servicing fees, reporting costs and our premium analytics services.
What services does LoanStreet offer?
- An integrated platform allowing financial institutions to quickly identify new loan participation opportunities on the buy side and sell side and transact with ease
- Standardized master agreements allowing parties to quickly close on deals rather than drafting individually negotiated NDAs and LPAs
- Automated, consolidated monthly reporting to save on operational costs, reduce administrative burden and prevent inaccuracies caused by otherwise manual processes
- Robust analytics solutions to track the performance of your individual loan pools as well as your portfolio as a whole
What types of loans are available on the LoanStreet platform?
Our broad network of financial institutions offers an exceptional diversity of loans across most major asset classes, including consumer unsecured, residential mortgage (first and second lien), commercial real estate, auto, solar/environmental and home improvement, among others.
Can I import my existing loans into the platform to manage them?
Yes – our team will help you onboard your existing loans into your portfolio to ensure your reporting and analytics correctly represent the extent of your loan trading activities.
