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CHICAGO – Secretary Bryan A. Schneider of the Illinois Department of Financial and Professional Regulation (IDFPR) today announced that its Division of Financial Institutions (DFI) is instituting a pilot program with Credit Union Loan Source, LLC (“CULS”), pursuant to 205 ILCS 305/8(10). Participation in the program will allow Illinois credit unions to more effectively manage their assets and liabilities and diversify their loan portfolios. The CULS program permits each credit union to buy a pro-rata portion of all loans it originated, and for which it has made a predetermined commitment. Collaboration in a specialized market could enhance production volume, managerial competence and improve risk management practices.

DFI is limiting the pilot program to highly rated credit unions with the experience, knowledge and expertise to address problems should they arise. To participate in the CULS program, credit unions must meet the following criteria:

    If assets of $500,000,000 or more, they may purchase up to 50% of net worth; or
    If assets between $250,000,000 to $500,000,000, they may purchase up to 25% of net worth total; and
    CAMEL rating of “1” or “2”, with Asset Quality no worse than a “2” and Credit Risk no worse than a Moderate.
In reviewing requests from credit unions, DFI will evaluate the following:
    Appropriate monitoring and tracking processes, as prescribed by DFI.r
    Due diligence, as prescribed by DFI.
The pilot program will commence on January 1, 2017, and expire on December 31, 2017, subject to renewal as the Division deems appropriate.

For more information on participating in the pilot program and the evaluation criteria prescribed by DFI, please contact Wade Cooper, DFI Credit Union Supervisor at Wade.Cooper@Illinois.Gov or (312) 814-2008.