LendKey Blog

Technology, Participations Offer Lenders Options

Loan demand is predicted to increase in the consumer and business markets in the near future as the national economy continues to recover. But this revival in lending will not be uniformly experienced across the United States. New technology and loan participation models, though, increase the options for lenders. Sellers, for example, can mitigate the […]

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Participation Technology Helps CU Earn ROI of 4.11%

Black Hills Federal Credit Union wanted to offer its members private student loans. In a “hard lending market, we’re always looking for opportunities,” says Shon Hanczyc, assistant vice president of branch operations for the Rapid City, South Dakota financial institution with $965 million in assets.  The credit union previously offered student loans through the Federal […]

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Outsourcing Keeps Pace with Technology Expectations

The Outsourced Lending case study in the resources section of this website demonstrates how two financial institutions that partner with LendKey to handle portions of their loan portfolios expanded their loan offerings to members, increased loan volume and benefitted the bottom line—all with little disruption to existing operations. A recent CreditUnions.com article echoes some of […]

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Networks Offer Multiple Benefits

More financial institutions are joining loan participation networks because of the multiple benefits that accrue from association. One of the reasons is that the cost of keeping pace with competitors as well as new technology is increasingly expensive. By sharing expenses in a network, individual institutions can achieve economies of scale and have access to […]

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Participations Provide Tools for ALM

When well executed, loan participations are like the Swiss army knife of investments, providing a variety of tools to hone asset-liability management and diversify holdings. Financial institutions can optimize these arrangements through careful planning and management. A loan participation is a formal arrangement in which partial ownership in a loan is transferred to one or […]

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Not Your Father’s Loan Participation

A recent article in the American Banker entitled “Community Banks Are Slowly Warming Up to Loan Participations” underscored the renewed interest in this asset class. And the article served as a window into the future as there is mounting evidence that loan participations will become more widespread in the years to come. One of the […]

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Green Loans Benefit Lender & Borrower

At a time when the average auto loan earns a margin of 1% to 2%, green loans represent a healthy alternative. “The actual number will vary depending on the state or utility program, but we’re finding that institutions can lend at 7.99% to 8.99% for seven-year terms to those with a 640+ FICO score,” says […]

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Green Loans Offer Lending Opportunities

Energy-efficient residential improvements can include everything from minor enhancements, like adding caulk around windows and doors to minimize air loss, to substantial updates such as siding, roofing and HVAC (heating, ventilation and air conditioning). The relatively high cost and longer payback for this type of update means consumers will often look for financing options to […]

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Why Consumers Want Green Loans

A November 2013 study by McKinsey & Company indicates that consumer motives for green loans vary. The findings show that: – 19% of consumers show the strongest energy-saving behavior and care about saving energy in their homes because they see it as a goal in its own right, irrespective of saving money – 20% exhibit […]

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Green Loans Are an Option Worth Pursuing

With loan margins at historically low levels, financial institutions are on the lookout for new opportunities to grow their portfolios. Green loans are an option worth pursuing. The definition of a “green loan” can be quite broad. Depending on their customer demographics and portfolio goals, financial institutions have found green lending opportunities in everything from […]

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