June 19, 2024

New agreement boosts Credit Union asset-backed security volume to more than $4 billion

First Community Credit Union has recently become a participant in the growing trend of credit unions securitizing auto loans. The Houston-based financial institution successfully issued a $263.3 million 144A securitization, marking their entry as the 11th credit union to engage in this funding method since it was approved by the National Credit Union Administration in 2017. This move by First Community Credit Union underscores the increasing adoption of securitization by credit unions as a means of financing.

The securitization issued by First Community Credit Union demonstrates the institution’s commitment to diversifying their funding sources and expanding their lending capacity. By tapping into the securitization market, FCCU is able to access additional liquidity and attract investors looking for opportunities in the credit union sector.

The successful issuance of the securitization by First Community Credit Union reflects the institution’s strong financial position and credit quality. Investors have shown confidence in FCCU’s ability to manage risk and deliver returns, making their securitization an attractive investment opportunity in the market.

In conclusion, First Community Credit Union’s participation in auto loan securitization highlights the ongoing trend of credit unions leveraging this funding method to support their lending activities. As more credit unions follow suit, the securitization market for credit unions is expected to continue growing, providing new opportunities for institutions to enhance their funding flexibility and drive loan growth.

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