Products & Services

Loan Participation

As a Credit Union, lending is what we do best. It generates superior returns versus the investment portfolio, and there is little additional risk with proper underwriting.

Credit Unions spend thousands of dollars each year trying to attract loans. Despite this, many remain excessively liquid. In 1996, the NCUA changed the regulations pertaining to loan participation, making it easier for Credit Unions to fund loan demand using existing loans.

The new regulation did not stimulate immediate activity. The missing component was a mechanism to match originating Credit Unions with participating Credit Unions.

Paragon Financial Group provides this, serving as a centralized trading desk for loan participations. We work with credit unions from the start and stay with them right through servicing.

We provide or assist in the following phases:

• Loan Participation Agreement
• Pricing
• Participant matching
• Cash Flow & Yield Analysis
• Service follow-up

Do not wait until you need Loan Participations, educate your staff and Board of Directors. Prepare for the FUTURE now!

Paragon Financial Group, Inc., recommends that you review NCUA Rules and Regulations Part 701.22 before you participate in this program. Its text appears at the end of this document.