MIDDLETOWN, Pa. (9/2/15)--Sollievo, a credit union service organization (CUSO) of Mid-Atlantic Corporate FCU, Middletown, Pa., is offering partial recourse insurance protection for high loan-to-value (LTV) loans.
The product, offered through the CUSO’s partnership with insurance broker Lockton, is designed increase yield and approve more loan opportunities that are currently being missed due to high loan-to-value LTV ratios.
The program gives credit unions the ability to offer additional funds to members who qualify for a loan that cannot be processed due to high LTV ratios. Members who qualify are those with good credit, but who may have negative equity in a trade or the inability to satisfy down-payment requirements, causing a credit union to lose the loan.
PRP gives a credit union the flexibility to provide a more competitive solution to its members, while minimizing additional risk through an insurance-backed program.
“By offering this product, we’re giving credit unions an unrivaled resource to increase revenue and loan volume, as well as provide members with more buying power,” said Lori Gall, Sollievo president/CEO.
The PRP program can be implemented with no contracts or enrollment fees, does not require a change in your lending guidelines and can be utilized immediately. In addition, the PRP system for quoting, eligibility and approval can be integrated into a credit union’s existing loan origination software.
“Not only will PRP give credit unions the opportunity to serve more members, build new relationships and expand financially, but it will also give them a competitive edge over banks and other financial institutions,” said Gall. “It truly is a revolutionary product that will benefit the credit union movement as a whole.”