Navy Federal Credit Union announced the introduction of a commercial loan participation program which will buy member business loans from other credit unions.
In announcing the commercial loan participation program, Navy FCU stated that it had ample capacity to partner with other credit unions on commercial loans. As of March 2012, Navy FCU reported holding approximately $179 million in member business loans and has unused member business loan capacity of almost $5.7 billion.
According to Navy FCU, the benefit for the partnering credit union is this will reduce the hit toward its aggregate member business loan cap of 12.25 percent of assets, while retaining the servicing commitment and the member relationship.
Read the press release.
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