Loyalty Program
What is the AVANA CUSO CRE Loyalty Program?
AVANA CUSO CRE Loyalty Program, effective from 1st January 2025, is a unique Loyalty program, where all Credit Unions are eligible to participate and enjoy low servicing fees, according to the Loyalty Tier they are qualified to.
How to become eligible for this Program?
Lenders can qualify for a discounted loan servicing fee on new participations and new servicing loans by meeting any of the following criteria:
By achieving the required Trailing Twelve Month (TTM) Loan Participation thresholds (3 loan minimum).
By achieving the required total Outstanding Loan Servicing Portfolio thresholds (10 loan minimum).
Loyalty Program Tiers
A few examples to help understand
Example 01
Outstanding Servicing Portfolio: $20MM; TTM Loan Participations: $5MM on January 1, 2025
→ LOYALTY TIER for January: Standard (50 bps)
Example 02
Outstanding Servicing Portfolio: Loan: $70MM; TTM Loan Participations: $35MM on January 1, 2025
→ LOYALTY TIER for January: Best of (Silver, Gold) = Gold (35 bps)
Example 03
Outstanding Servicing Portfolio: $70MM; TTM Loan Participations: $25MM on January 1, 2025; however, Lender is onboarding $31MM in new servicing during the month.
→ LOYALTY TIER for January would normally be Silver (40 bps). However, the additional $31MM in new servicing loans will increase Lender’s Outstanding Servicing Portfolio to $101MM, making Lender eligible for a mid-month upgrade to Diamond, and a servicing fee of 25 bps on the newly added $31MM.
A few examples to help understand
Example 01
Outstanding Servicing Portfolio: $20MM; TTM Loan Participations: $5MM on January 1, 2025
→ LOYALTY TIER for January: Standard (50 bps)
Example 02
Outstanding Servicing Portfolio: Loan: $70MM; TTM Loan Participations: $35MM on January 1, 2025
→ LOYALTY TIER for January: Best of (Silver, Gold) = Gold (35 bps)
Example 03
Outstanding Servicing Portfolio: $70MM; TTM Loan Participations: $25MM on January 1, 2025; however, Lender is onboarding $31MM in new servicing during the month.
→ LOYALTY TIER for January would normally be Silver (40 bps). However, the additional $31MM in new servicing loans will increase Lender’s Outstanding Servicing Portfolio to $101MM, making Lender eligible for a mid-month upgrade to Diamond, and a servicing fee of 25 bps on the newly added $31MM.
Terms and Conditions of the Program
- Tier eligibility is assessed at the beginning of each month and applies to all eligible loans Lender selects for participation and/or brings over for servicing during that month.
- Lenders can “move up’ a tier(s) during the month for subsequent new loans if required thresholds are achieved.
- Tiers apply to performing term CRE loans only (excludes Cannabis, Bridge, Construction, and/or adversely graded loans).
- Tiers are applicable to ‘new loans’ only, and DO NOT affect loan servicing fees on existing loans already serviced by AVANA CUSO.
- If eligible for multiple tiers, the highest Tier will apply.
- The terms contained herein are not all-inclusive and are subject to change at any time without notice.
“AVANA CUSO’s strength is in understanding the unique character of every transaction and borrower, and reacting in real-time to solve problems to get deals closed.”
Commercial Mortgage Capital, Inc.