Financial Services · Moraph software

Shared-Risk Loan Syndication Engine

Offer, sell and service loan participations with partner credit unions, from one record

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Overview

What you are buying

The Shared-Risk Loan Syndication Engine lets a credit union offer participation interests in its loans to partner institutions, check each offer against the buyer's policy and limits, and record commitments as partners respond. It prepares participation agreements and loan files for due diligence, then calculates each participant's share of payments for servicing. Every offer, approval and remittance keeps its evidence for examiners and auditors.

The problem it solves

Credit unions sell loan participations to manage concentration, liquidity and lending capacity, but the process usually runs on email, phone calls and spreadsheets. Sellers send loan packages to partners one at a time, buyers check their own policy limits by hand, and agreements are negotiated from old templates. Once a participation closes, servicing staff calculate each participant's share of every payment in spreadsheets, and examiners ask for due diligence and limit evidence that is scattered across inboxes.

  • Loan packages and offers are sent partner by partner by email
  • Buyers check eligibility and concentration limits by hand
  • Participation agreements are assembled from old documents
  • Remittance shares and participant reporting are calculated in spreadsheets

Who uses it

  • Credit unions that sell loan participations to manage concentration, liquidity or capacity
  • Credit unions and other eligible institutions that buy participations
  • Commercial and consumer lending teams who originate the loans
  • Loan servicing and accounting staff who remit payments to participants
  • CFOs, ALCO members and examiners who oversee participation limits

Requirements it supports

NCUA loan participation rule (12 CFR 701.22)NCUA member business loans and commercial lending (12 CFR Part 723)NCUA loans to members and lines of credit (12 CFR 701.21)NCUA Call Report (Form 5300) reporting of participationsFASB ASC 860, Transfers and Servicing (participating interest criteria)

The product supports these requirements; meeting them remains your organization’s responsibility.

See how it works

A short walkthrough

Illustrative screens with fictional sample data. They show the workflow, not any client’s data or configuration, and the layout of the product itself differs. A live demonstration uses the product with sample data.

  1. Step 1

    Offers received

    A buyer starts from offers made to it, already screened against its participation policy.

    OfferOriginatorLoan typeOfferedScreeningRespond by
    OF-1182Example Valley CU (fictional)Commercial real estate$1,200,000PassedIn 6 days
    OF-1179Example Harbor CU (fictional)Auto pool$3,500,000PassedIn 4 days
    OF-1174Example Ridge CU (fictional)Construction$800,000Exceeds originator limitIn 3 days
    OF-1168Example Valley CU (fictional)Solar loan pool$950,000PassedIn 2 days
    A buyer starts from offers made to it, already screened against its participation policy.

  2. Step 2

    The offer

    Each offer shows the loan, the seller's retained share and how it compares with the buyer's policy.

    Loan 40217 · Commercial real estate (fictional)

    Loan amount
    $2,400,000
    Seller retains
    50%
    Offered
    $1,200,000 (50%)
    Rate and term
    Fictional sample terms
    Risk grade
    3 (seller's scale)
    Committed so far
    $400,000 from 1 partner

    Screening against your policy

    • Loan type eligible
    • Within limit for this originator
    • Within limit for commercial real estate
    • Loan-to-value within your criteria
    Each offer shows the loan, the seller's retained share and how it compares with the buyer's policy.

  3. Step 3

    Due diligence

    The buyer's analyst records an independent review, and an authorized officer approves the commitment.

    Due diligence · Offer OF-1182

    1. Offer assigned for reviewBuyer officer
    2. Credit memo, rent roll and appraisal reviewedCredit analyst
    3. Question on tenant concentration sent to sellerCredit analyst
    4. Seller answered with lease scheduleParticipation manager (seller)
    5. Recommendation: commit $400,000, with rationaleCredit analyst
    6. Commitment approvedBuyer officer
    The buyer's analyst records an independent review, and an authorized officer approves the commitment.

  4. Step 4

    Allocation

    The seller sees commitments as partners respond and allocates them against the amount offered.

    PartnerCommittedAllocatedAgreementStatus
    Example Lakes CU (fictional)$400,000$400,000SignedClosed
    Example Prairie CU (fictional)$400,000$400,000Sent for signatureClosing
    Example Summit CU (fictional)$500,000$400,000Not startedPartial allocation
    Remaining$0Fully allocated
    The seller sees commitments as partners respond and allocates them against the amount offered.

  5. Step 5

    Remittance

    Each month the Engine calculates every participant's share of collections for servicing to review and approve.

    Loan 40217 · Fictional sample month

    Principal collected
    $6,210
    Interest collected
    $11,480
    Late fees
    $0
    Participants
    3
    Status
    Awaiting approval

    Shares by participant

    • Example Lakes CU (fictional): 16.67%
    • Example Prairie CU (fictional): 16.67%
    • Example Summit CU (fictional): 16.67%
    • Seller retained: 50%
    Each month the Engine calculates every participant's share of collections for servicing to review and approve.

  6. Step 6

    Concentration position

    The CFO and ALCO see participations against each limit, with headroom and any overrides.

    LimitPolicy limitCurrentPendingHeadroom
    All purchased participations$40,000,000$27,600,000$400,000$12,000,000
    Example Valley CU (originator)$8,000,000$6,900,000$400,000$700,000
    Example Ridge CU (originator)$8,000,000$7,700,000$0$300,000
    Commercial real estate$15,000,000$10,200,000$400,000$4,400,000
    The CFO and ALCO see participations against each limit, with headroom and any overrides.

Workflows

The principal workflows

  1. Offer

    The selling credit union picks a loan or pool, sets how much it will sell and retain, and offers it to selected partners with the loan file they need to decide.

    • Loan or pool selected from the servicing system
    • Retained share and amount offered set against the seller's policy
    • Loan file and credit memo assembled for the offer
    • Partners selected from the seller's partner list
    • Offer published with a response date

  2. Evaluate

    Each buyer sees offers checked against its own participation policy, including loan type, credit criteria and concentration limits, before its credit analyst reviews the loan file.

    • Offer screened against the buyer's eligibility criteria
    • Concentration checks against limits by originator, loan type and borrower
    • Credit analyst reviews the loan file and records due diligence
    • Recommendation to commit, with amount and rationale
    • Commitment approved by the buyer's authorized officer

  3. Close

    Commitments are allocated against the amount offered, the participation agreement is prepared from the approved template, and both sides sign before funding.

    • Commitments allocated as partners respond
    • Participation agreement and certificate prepared from template
    • Both parties review and sign
    • Settlement instructions confirmed outside the Engine
    • Participation recorded as closed with its documents

  4. Service

    As the seller collects payments, the Engine calculates each participant's share of principal, interest and fees, prepares remittance statements, and keeps participants informed of loan performance.

    • Payment activity imported from the servicing system
    • Shares calculated for each participant
    • Remittance statements prepared for approval
    • Approved remittances sent through the seller's own payment channels
    • Periodic loan performance reports shared with participants

Roles and permissions

Who does what in the product

Each role below is a starting point. During implementation we set them up to match your teams, and every action anyone takes is recorded in the audit trail.

Participation manager (seller)

Participation manager, commercial lending manager, loan sales officer

Decides which loans to offer, prepares the offers and closes participations with partners.

Sees

  • Loans eligible to offer with balances, terms and performance
  • Offers in progress and commitments received
  • Partner directory and agreements on file
  • Retained share and sold balances by loan

Does

  • Creates offers for single loans or pools
  • Assembles the loan file shared with partners
  • Selects partners and sets response dates
  • Allocates commitments and prepares the participation agreement
  • Answers partner questions through the offer

Cannot

  • Publish an offer that breaches the seller's retention or policy settings without approval
  • Approve remittances
  • See a buyer's internal due diligence notes
Approvals
Offers above the amounts your policy sets are approved by the CFO or a designated officer before publication.
Notified about
Partner commitments and questions, offers approaching their response date, and agreements signed.

Investment or lending officer (buyer)

Chief lending officer, investment officer, participation purchasing officer

Decides whether the buying institution commits to a participation and for how much.

Sees

  • Offers made to their institution with screening results
  • Credit analyst recommendations
  • Their institution's concentration position against limits
  • Participations held and their performance

Does

  • Approves or declines commitments
  • Sets the amount committed within policy
  • Signs participation agreements where authorized
  • Reviews participant reports on loans held

Cannot

  • Approve a commitment that breaches a policy limit without the override your policy requires
  • Approve a commitment they analyzed themselves where a second approver is required
  • Change their institution's policy limits
Approvals
Commitments are approved by them; commitments above their authority or outside policy go to the CFO, ALCO or board as your policy sets.
Notified about
New offers that pass screening, recommendations awaiting approval, and agreements to sign.

Credit analyst

Credit analyst, underwriter, participation due diligence analyst

Reviews each loan offered as an independent credit decision and records the due diligence.

Sees

  • Loan files for offers assigned to them
  • Screening results against their institution's policy
  • Earlier participations from the same originator

Does

  • Reviews the credit memo, financials, collateral and documents
  • Records due diligence findings and questions to the seller
  • Writes a recommendation with amount and rationale
  • Flags exceptions to policy

Cannot

  • Approve their own recommendation
  • Commit their institution to a participation
  • Download loan files where the seller has restricted downloads
Approvals
Every recommendation is approved or declined by the buyer's authorized officer.
Notified about
Offers assigned for review, seller answers to their questions, and response dates approaching.

Loan servicing and accounting

Loan servicing manager, accounting manager, participation servicing specialist

Makes sure each participant receives the right share of every payment and the right information about loans they hold.

Sees

  • Payment activity on participated loans
  • Each participant's share and servicing terms
  • Remittance history and statements

Does

  • Imports payment activity from the servicing system
  • Reviews calculated shares and resolves exceptions
  • Prepares remittance statements for approval
  • Records remittances sent through your payment channels
  • Prepares participant performance reports

Cannot

  • Approve the remittances they prepared
  • Change participation terms or shares after closing without an amendment
  • Send funds through the Engine; payments use your own channels
Approvals
Remittance statements are approved by a second person in accounting or finance before payment.
Notified about
Payment imports with exceptions, remittances awaiting approval, and participant reports due.

CFO or ALCO

Chief financial officer, ALCO member, treasurer

Sets participation policy limits and oversees how participations affect concentration, liquidity and capital.

Sees

  • Participations purchased and sold across the institution
  • Concentration positions against limits
  • Policy overrides and exceptions
  • Program reporting for ALCO and the board

Does

  • Sets eligibility criteria and concentration limits from board-approved policy
  • Approves offers and commitments outside delegated authority
  • Approves policy overrides
  • Reviews program reports for ALCO and the board

Cannot

  • Change limits without the change being recorded with the policy reference
  • Edit or delete entries in the audit trail
Approvals
Approves limit changes, overrides and large offers or commitments; limit changes follow your board-approved policy.
Notified about
Overrides requested, positions approaching limits, and large offers or commitments awaiting approval.

Auditor or examiner (read-only)

Internal auditor, external auditor, supervisory examiner (under temporary access)

Reviews participations, due diligence, limits and remittances without being able to change anything.

Sees

  • Participations, agreements and due diligence records within the scope granted
  • Limit settings and their change history
  • Remittance statements and the audit trail

Does

  • Searches and reads records within their scope
  • Exports records and reports they have been given access to, with each export logged

Cannot

  • Change, approve or delete anything
  • See records outside the scope and dates granted
  • Keep access after it expires
Approvals
Their access is approved by the CFO or an administrator, with a scope and an end date.
Notified about
Nothing by default.

Administrator

Application administrator, lending systems administrator

Manages users, roles, partners and templates for the institution, without approving any deal.

Sees

  • Users, roles and partner connections
  • Templates and configuration
  • The record of permission changes

Does

  • Adds and removes users, or maps them from single sign-on groups
  • Assigns roles and approval authorities set by policy
  • Maintains agreement templates approved by counsel
  • Connects partner institutions to the directory
  • Runs access review reports

Cannot

  • Approve offers, commitments or remittances
  • Change policy limits
  • Grant themselves an approving role without a second administrator or the CFO
Approvals
Changes to approval authorities are approved by the CFO.
Notified about
Access reviews coming due and partner connection requests.

Permissions at a glance

ActionSeller mgrBuyer officerCredit analystServicingCFO/ALCOAuditorAdmin
Create and publish an offerOwn work onlyNo accessNo accessNo accessApprovesNo accessNo access
Share and access loan filesOwn work onlyView onlyView onlyNo accessView onlyView onlyNo access
Record due diligenceNo accessView onlyOwn work onlyNo accessView onlyView onlyNo access
Commit to buy a participationNo accessApprovesNo accessNo accessApprovesNo accessNo access
Allocate commitmentsOwn work onlyNo accessNo accessNo accessView onlyView onlyNo access
Prepare a participation agreementOwn work onlyView onlyNo accessNo accessView onlyView onlyNo access
Set policy limitsNo accessView onlyView onlyNo accessFullView onlyNo access
Approve a policy overrideNo accessNo accessNo accessNo accessApprovesView onlyNo access
Prepare remittance statementsNo accessNo accessNo accessOwn work onlyView onlyView onlyNo access
Approve remittancesNo accessNo accessNo accessApprovesApprovesView onlyNo access
View audit trailNo accessNo accessNo accessNo accessView onlyView onlyView only
Manage users and rolesNo accessNo accessNo accessNo accessApprovesNo accessFull
  • Full
  • Own work only
  • Approves
  • View only
  • No access

How access is controlled

  • Four-eyes rules are built in: analysts do not approve their own recommendations, nobody approves a remittance they prepared, and overrides of policy limits need an approver with that authority.
  • Each institution controls its own roles and data. A seller never sees a buyer's internal due diligence or limits, and a buyer sees only offers made to it and participations it holds.
  • Roles are configured with you during implementation, including approval authorities by amount and loan type taken from your lending and participation policies.
  • Staff sign in through your identity provider. Auditors and examiners get temporary read-only access with a defined scope and an end date, and every permission change is recorded.

Features

What it does

Participation offers

Offer a single loan or a pool to selected partners, with amount offered, retained share, pricing and response date.

Buyer policy screening

Each buyer's eligibility criteria and limits are configured once, and every offer is checked against them before review.

Concentration tracking

Participations purchased and sold are tracked against limits by originator, loan type and borrower that each institution sets from its own policy.

Loan file sharing

Credit memos, financial statements, appraisals and loan documents shared with partners who have an offer, with each access logged.

Due diligence records

The buyer's review of each loan, including the analyst's notes and the approver's decision, kept with the participation.

Allocation as partners respond

Commitments are recorded and allocated against the amount offered as each partner responds, so the seller sees what remains.

Agreement preparation

Participation agreements and certificates prepared from templates your counsel approves, with deal terms filled in from the offer.

Remittance calculation

Each participant's share of principal, interest, fees and servicing retained is calculated from payment activity.

Participant reporting

Loan performance, balances and delinquency reported to participants on the schedule set in the agreement.

Partner directory

The partners you work with, their contacts, agreements on file and the loan types they buy.

Call Report support

Participation balances purchased and sold, by loan type, prepared for your Call Report preparers.

Audit trail

Every offer, screen result, approval, document access and remittance recorded with the person and time.

Integrations

How it connects to your systems

Connects toHowWhat flows
Core and loan servicing systemLoans, balances, terms and payment activity by scheduled file or API, mapped during implementation.In: loan records and payment activity. Out: participation records for your servicing system.
Loan origination systemCredit memos, approvals and loan documents for loans you offer.In: credit memos, decisions and documents.
Document storageLoan files and signed agreements stored with the participation, or linked from your document system.Both ways: documents and their index.
Electronic signatureParticipation agreements sent for signature through the e-signature service you use.Out: agreements for signature. In: signed documents and status.
General ledgerParticipation balances, remittances and servicing income prepared for posting by your accounting team.Out: journal entry files for review and posting.
Call Report preparationParticipation balances by loan type for your Call Report preparers, including Moraph's Automated Call Report Filer.Out: participations purchased and sold by category.
Single sign-onStaff sign in through your identity provider (SAML or OpenID Connect).In: user identity and group membership for role assignment.
Work APIOffer, participation and remittance data available to your data warehouse through the Moraph Work API.Out: offers, commitments, participations and remittances.

Each integration is confirmed in discovery and specified in the design. See how an engagement progresses.

Security and privacy

How your data is protected

Single sign-on

Staff sign in through your identity provider, so your password and multi-factor policies apply.

Separation between institutions

Each institution's data, limits and internal reviews are visible only to its own users; loan files are shared only with partners that receive an offer.

Role-based access

What each person can see and do follows their role; preparing a remittance or recommendation is separate from approving it.

Encryption and keys

Client data is encrypted, with keys Moraph staff cannot use without explicit, time-bound authorization.

Complete audit trail

Every view, document access, decision, approval and export is logged with the person and time, and cannot be edited.

Data residency

Data is hosted in the United States region.

Company-wide controls, independent audits (SOC 2 Type II and ISO/IEC 27001) and data residency are described in our Trust Center, where you can request the evidence pack.

Reporting

What you can report on

11 standard reports, grouped by who uses them. Each shows who it is for, how it can be broken down, how it is delivered and what it is used for. The data behind them is also available to your own reporting tools.

Deals

Offer pipeline

For participation managers

Offers in preparation, published and closing, with amount offered, committed and remaining for each.

Break down by
Loan type, Partner, Status, Response date
Delivered as
Live dashboard; CSV export
Used for
Managing offers to closing and following up with partners.

Offers received

For buyer officers and credit analysts

Offers made to the institution with screening results, review status and decisions.

Break down by
Originator, Loan type, Screening result, Status
Delivered as
Live dashboard; CSV export
Used for
Prioritizing reviews and responding before offers close.

Participations closed

For participation managers, buyer officers and the CFO

Participations closed in the period, with parties, amounts, retained share and agreement status.

Break down by
Period, Loan type, Partner, Purchased or sold
Delivered as
Live dashboard; PDF and CSV export
Used for
Tracking program activity and confirming documents are complete.

Risk and limits

Concentration position

For cFO, ALCO and buyer officers

Participations held and sold against each limit, by originator, loan type and borrower, with headroom remaining.

Break down by
Originator, Loan type, Borrower, Limit
Delivered as
Live dashboard; PDF for ALCO packs
Used for
Keeping participations within policy and planning future purchases and sales.

Policy overrides

For cFO, ALCO, board and examiners

Every offer or commitment approved outside a policy limit, with the reason and approver.

Break down by
Limit, Approver, Period, Loan type
Delivered as
Live view; PDF and CSV export
Used for
Reporting exceptions to ALCO and the board.

Portfolio performance

For buyer officers, CFO and ALCO

Balances, delinquency and loan grades for participations held, compared with the institution's own loans of the same type.

Break down by
Originator, Loan type, Delinquency band, Period
Delivered as
Live dashboard; PDF export
Used for
Monitoring the credit quality of purchased participations.

Servicing

Remittance register

For servicing and accounting

Remittances calculated, approved and sent for each participant, with principal, interest, fees and servicing retained.

Break down by
Participant, Loan, Period, Status
Delivered as
Live view; CSV export; statements in PDF
Used for
Reconciling payments to participants and answering their questions.

Participant reports

For participants, prepared by servicing

For each participant, balances, payments, delinquency and loan events on the participations it holds.

Break down by
Participant, Loan, Period
Delivered as
PDF shared through the Engine on the schedule in the agreement
Used for
Meeting reporting obligations in participation agreements.

Call Report participation data

For accounting and Call Report preparers

Participations purchased and sold, by loan category, as of the reporting date.

Break down by
Loan category, Purchased or sold, Counterparty type
Delivered as
CSV export; data feed to the Automated Call Report Filer
Used for
Preparing Call Report schedules from the participation records.

Audit

Due diligence file

For internal audit and examiners

For a selected participation, the loan file, screening results, analyst review, approval and agreement.

Break down by
Participation, Originator, Approver, Date range
Delivered as
On request in the product; PDF export
Used for
Showing that each purchase had an independent credit review.

Audit trail extract

For internal audit and examiners

Who did what, when and why for a selected participation, offer, remittance or period.

Break down by
Record, User, Action, Date range
Delivered as
On request in the product; CSV and PDF export
Used for
Answering examiner and auditor requests without assembling evidence by hand.

Exports, access and evidence

  • Every report can be exported to CSV, and summary and evidence reports to PDF. Reports can be scheduled by email for the people entitled to see them.
  • Reports respect each institution's boundaries: a seller sees offers and remittances for its own loans, a buyer sees its own reviews and holdings, and neither sees the other's internal records.
  • Offer, participation and remittance data is available through the Moraph Work API for your data warehouse and ALCO reporting tools.
  • Concentration and override reports can be run as of a past date and give the same result each time, for ALCO packs and examinations.
  • Running and exporting a report is itself recorded in the audit trail.

Deployment

Where and how it runs

Moraph cloud

Hosted and operated by Moraph in the United States region.

Dedicated environment

A single-tenant environment for institutions or credit union service organizations whose policies require isolation, scoped in the proposal.

With a managed service

Optionally run alongside a Moraph managed service for data loads, partner onboarding and platform administration.

Security controls, independent audits and data residency are set out in our Trust Center. Engagement models and what drives a quotation are on Working with Moraph.

Implementation

What a rollout involves

The general phases are on Working with Moraph. For this product, they involve the following.

Policy review

We take your participation and lending policies and configure eligibility criteria, limits and approval authorities from them, for your CFO to confirm.

Data mapping

Loans, balances and payment activity from your core or servicing system are mapped and the file or API schedule agreed. We need extracts and a contact from your core-system team.

Agreement templates

Your counsel's participation agreement and certificate are set up as templates with the deal terms to be filled from each offer.

Existing participations

Participations you already hold or have sold are loaded with their terms and shares so servicing and reporting cover the whole book.

Partner onboarding

Partner institutions you work with are connected to the directory; partners not yet using the Engine can receive offers through an invited account.

Training and go-live

Sellers, buyers, analysts and servicing staff are trained on their own workflows, and remittance calculations are checked against your current method before go-live.

Limitations

What it does not do

Worth knowing before you evaluate it.

  • Moraph does not hold funds. Settlement at closing and remittances to participants are sent through your own payment channels; the Engine calculates and records them.
  • The Engine does not make credit decisions. Each buyer's analysts and officers review loans and decide whether to commit.
  • It does not originate or service loans. It uses data from your origination and servicing systems.
  • Policy limits are configured from your policies; whether a participation complies with regulation and policy remains your institution's judgment.
  • Agreement templates come from your counsel. Moraph does not provide legal advice or decide whether a transfer qualifies for sale accounting.
  • It is designed for US credit union participations. Bank participations and syndications outside the United States are not configured as standard.
  • It is not a marketplace or broker. Moraph does not find partners, set pricing or take part in transactions.
  • Offers and commitments update as partners respond, but timing depends on when partners review and approve.

Evaluation checklist

What to test in a demonstration or pilot

Questions worth putting to us, and to any other vendor you are considering.

  1. Load a sample of your own anonymized loans and prepare an offer from one
  2. Configure your participation policy limits and check how an offer is screened against them
  3. Walk through a buyer's due diligence from offer to approved commitment
  4. Compare the Engine's remittance calculation with your current spreadsheet for one month
  5. Review the concentration report against what you present to ALCO
  6. Confirm role separation: who can recommend, approve, prepare and approve remittances

Questions

Frequently asked questions

Does Moraph hold or move the money?

No. Moraph does not hold funds. Settlement and remittances go through your own payment channels; the Engine calculates the amounts and records what was sent.

Do our partners need to use the Engine?

Partners get the most from it with their own account, which includes screening and due diligence records. Partners not yet using it can be invited to review and respond to offers.

Can we use our own participation agreement?

Yes. Your counsel's agreement and certificate are set up as templates during implementation.

Who owns the data?

Each institution owns its own data. How it is returned and deleted at the end of the agreement is set out in the contract.

How is it priced?

As a subscription, usually measured by the size of the institution or the volume of participations managed, with implementation charged separately. See Working with Moraph for what drives a quotation.

How do examiners see our participation program?

A read-only examiner role shows participations, due diligence files, limits, overrides and remittances, and everything can be exported.

Next steps

Evaluate Shared-Risk Loan Syndication Engine

Book a demonstration

See the product working with sample data, focused on your workflows.

Request a demonstration

Request a technical briefing

Architecture, integrations, security and hosting, with our engineers and your technical team.

Request a briefing

Factsheet

This page on two sides, to share with colleagues or add to your evaluation file.

Open the factsheet

Buying through a formal procurement? See How to buy for purchasing routes, accessibility conformance reports and company information. Documentation: Shared-Risk Loan Syndication Engine guides on docs.moraph.com (getting started and security guides are public; setup, administration and integration guides are for client accounts). Support: Shared-Risk Loan Syndication Engine support guide.

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