Participating Consumer Loans

Posted By: Banker75

Participating Consumer Loans - 05/26/21 05:44 PM

We've had a bank ask us to participate a consumer real estate loan as they are at their legal limit and my President and CLO both would like to move forward on this but I have been asked by others to double check that this is something we can do. I understand this is normal on the commercial side but we've never participated a consumer real estate loan before. The other bank, due to legal limits, wants to keep 20% with us taking on the 80%. Is this allowed?
Posted By: RR Sarah

Re: Participating Consumer Loans - 05/26/21 06:25 PM

Yes, we participate in real estate loans for a smaller community bank that faces the same lending limit issues.
Posted By: Banker75

Re: Participating Consumer Loans - 05/26/21 06:36 PM

Thank you for letting me know. I was trying to research and could not find anything that said we couldn't but was asked by others to confirm so I will pass this on. Thank you again!