Pros and cons
The conclusion of the white paper: Consider the pros and cons of loan participations and your credit union’s particular situation before getting involved.
Pros include that loan participations:
Loan participations “have numerous advantages but are complex and attracting regulatory attention,” notes the white paper. “They need to be ‘done right’ to work, and require quality partners and resources or access to those resources. Programs profiled in this paper seem to indicate that the risks, if managed prudently, are well worth taking.”