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Several platforms have emerged to facilitate matching counterparties and to provide necessary due diligence and documentation for credit analysis, whether to purchase whole loans, participations or both.
Primis Bank division Panacea Financial has developed a robust platform catering to physicians, dentists and veterinarians across the country and a concentration of loans in that sector. LendingClub Bank is in a nationwide search for Small Business Administration loans. And Optus Bank, a community development financial institution that must provide 60 percent of its loans to members of low-to-moderate-income communities, is seeking to grow its book outside its Columbia, South Carolina, footprint.
Each of these banks is either seeking to add or reduce loans on its balance sheet. Regional banks whose lending may be confined to their local business markets have always faced challenges managing their assets and liabilities. To diversify by product type and geography on the asset side, they have tended to rely on brokers to match them up with counterparties to either purchase or sell loans. Aiming to provide more efficient and potentially cost-effective options, several platforms have emerged to facilitate matching counterparties in accordance with their balance-sheet needs, and to provide the necessary due diligence and documentation for credit analysis, whether to purchase whole loans, participations, or both.