SFA Research Corner: Consumers Turn to Credit Unions—Credit Unions Turn to Securitization

On September 26, Ent Credit Union, a federally insured state-chartered credit union (FISCU) in Colorado, issued its first auto loan ABS. This is the sixth credit union auto ABS this year, bringing the total to ten since credit unions entered the auto ABS market in 2019. Auto loans make up 31%, or roughly $500 billion, of the $1.6 trillion of consumer loans held by credit unions. Remarkable loan growth in recent years attests to consumer demand, but also puts pressure on funding sources, impacts the balance sheet and, in the current interest rate environment, poses potential liquidity challenges. Larger credit unions have responded by turning to securitization. Read More.