Our Solution

Overview

Marketplace loans for members and non-members alike.
Non-members are instantly matched to a credit union for which they’re eligible.
Federal or state chartered credit unions are the lenders.
CU Lending Cooperative LLC provides a customized "white label" loan origination platform and marketing services for a loss-protected consumer installment loan program.
Credit Solutions Corporation provides loan servicing for delinquent and charged-off loans under the Loan Program.
Under a Risk Participation Agreement with CULC, initial cash reserve is deposited into a Loss Protection Reserve Account. The excess interest spread from loans compounds monthly into the reserve account up to the maximum cash reserve amount set forth in the Loan Program Agreement.

Online Consumer Lending Platform

When a borrower applies for a loan on a marketplace site, proprietary CULC software instantly qualifies the applicant and matches them to a participating credit union where they’re eligible for membership. Our integrated, cloud-based system can create the necessary account records in your core system and fund the loan into a new share account. Your new member has the option to access the funds immediately by signing up for online/mobile banking or they can wait to receive their debit card.

Loss Protected Loan Program

Loan Underwriting Criteria for Loss Protected loans that meet the following terms and underwriting:

Unsecured installment loan terms

Amount: $2,500 -$15,000.
Term: 36 months.
Minimum FICO Range 685 or higher.
Origination fee: 3.00% paid by borrower at funding.
Average APR: 11.99%.
No prepayment penalty.
Annualized IRR to credit union lender including servicing fees and origination fees 2% to 4%.

Underwriting

Minimum borrower age 18 years old.
Maximum 35% Debt to Income Ratio (excluding residence mortgage).
No late payment >30 days in prior 24 months.
No late payment >60 days in prior 36 months.
No late payment >90 days in prior 48 months.
No Marketplace Lending loan originations in the last 180 days.
No derogatory Public Records on credit bureau report in the last 10 years except discharged bankruptcy within last 3 years is allowed.
Minimum two years verified on job or >two years job history in related field.
No record of Payday, RTO or Auto Title loans within the last 12 months.

The borrower experience

Prospective borrower visits the marketplace lender to investigate loans.
The marketplace lender connects to the CULC Decision Engine.
The Decision Engine pre-populates the loan application, performs a bureau hard pull and generates a final approval (or turn down or live loan officer chat).
Data is sent to the credit union’s core system in real time for instant onboarding.
The borrower is then notified about the funding and next steps.

White Label Application Process (pdf)

Economics

Credit union cash flows:

Guaranteed P&I cash flow from loan payments (W/A 2.25% per annum).
Loan origination fee (1% of gross loan amount).
Loan servicing fee.

CULC cash flows:

Loan origination and marketing fee (2%)
Cohort profit share (100% of the excess cash reserve account).
Charge off recovery split (50% profit split)

View a Demo

View our white label borrower's experience demo (coming soon).

Millennials work, play, research, and invest online with the expectation of immediate feedback. Is your credit union nimble enough to attract these users and convert them into lifelong members?