Selling Loans vs. Our No-Risk Option
Selling loans allows the credit union to earn income while serving its members in cases where the loan does not fit into the portfolio. VARRIS makes the process easy, however there are risks associated with selling loans. Correspondent lending agreements provide the investor with the right to make the lender repurchase the loan. That said, the risk comes with the benefit of income without burdening the portfolio.
VARRIS also offers a No-Risk Option for loans that do not fit the portfolio. In the interest of serving your member while relieving the credit union of any obligation to book or fund and sell the loan, VARRIS will broker the loan to a wholesale lender. This is done in VARRIS’ name, so there is no risk to the credit union.
VARRIS acts as your liaison by handling commitments, as well as packaging and delivering closed loans to the investor according to their unique requirements. We work with the loan purchase department to satisfy any conditions that may arise. Then, when the loans are ready to be purchased, VARRIS prepares a detailed analysis of the funds being wired to you directly from the investor. VARRIS never handles your funds directly.
- Saleable loans
- Popular loan products
- Liaison to investor
- Loan delivery
- Loan sale analysis
VARRIS relieves the credit union of any risk associated with keeping or selling the loan while still delivering the loan that your member applied for. This is done by brokering the loan to a wholesale lender in VARRIS’ name. Due to RESPA compliance, there are no charges or income to the credit union, but the promise of excellent member service is kept.
- No Risk
- Satisfied Member
- RESPA Compliance