LendKey facilitates $20M credit union loan sale

LendKey said its ALIRO platform helped Center Parc Credit Union sell $20 million of home improvement loans to Great Lakes Credit Union in 10 days, far faster than the roughly eight weeks such participations can take. The deal shows how ALIRO is being used to create post-origination liquidity and help credit unions manage balance sheets and source consumer loan assets.

Why it matters: - The transaction shows how credit unions can use loan sales to free up balance sheet capacity after origination. - LendKey said ALIRO is designed to help credit unions buy and sell loans more efficiently while managing concentration risk and deploying capital. - The deal also gave Great Lakes Credit Union access to home improvement loan assets with attractive returns, while Center Parc Credit Union gained liquidity.

What happened: - LendKey announced it facilitated a $20 million sale of home improvement loans from Center Parc Credit Union to Great Lakes Credit Union. - The company said ALIRO completed the transaction in 10 days. - John Anderson, chief lending officer at Center Parc Credit Union, said a $20 million participation can often take about eight weeks and that LendKey handled 99% of the work. - Fred Campobasso, Anderson’s counterpart at Great Lakes Credit Union, said the assets offered high returns and that the process was smooth, simple and fast.

The details: - LendKey originally partnered with Center Parc Credit Union to originate the home improvement loans. - ALIRO then facilitated the transfer of those assets to Great Lakes Credit Union. - The platform is positioned as a marketplace for loan sales and participations across the credit union sector. - LendKey said the transaction is part of a broader effort to reshape how credit unions manage full lifecycle loan portfolios. - LendKey said its network lending model lets local lenders access national markets while staying focused on community lending. - The company said ALIRO is backed by nearly two decades of origination and servicing expertise. - LendKey said it has facilitated more than $8 billion in loans through a national network of credit unions and community banks. - Great Lakes Credit Union was founded in 1938, is headquartered in Northern Illinois and has more than $1.4 billion in assets. - Great Lakes Credit Union serves more than 105,000 members in Chicagoland and surrounding areas. - Center Parc Credit Union said it is Georgia’s oldest credit union and serves more than 123,000 members nationwide. - Center Parc Credit Union said its assets have grown to more than $2.5 billion.

Between the lines: - The speed of the transaction suggests digital loan-participation tools can remove friction from a process that traditionally takes weeks. - The deal also points to growing demand for structured ways to trade consumer loan assets among credit unions. - Vince Passione, founder and CEO of LendKey, said credit union collaboration strengthens the industry and that ALIRO was built to make those partnerships seamless.

What’s next: - Great Lakes Credit Union said LendKey could become one of its go-to partners for loan participations in the future. - LendKey is likely to continue using ALIRO to support more loan sales and participations as credit unions look for balance sheet flexibility and portfolio diversification. - LendKey said it wants to help partners deploy capital, mitigate risk and diversify portfolios through its network lending model.

The bottom line: - The deal is a practical example of how credit unions are using technology to move loan assets faster and create liquidity after origination. - For LendKey, the transaction serves as proof that ALIRO can connect lenders and buyers around consumer loan assets at scale.