Gelde Advisors and CU Revest Continue to Resolve Unwanted CRE Loans for Credit Unions
In November, 2024, Gelde Advisors announced it had joined with award winning CUSO CU Revest to enhance its platform in helping Credit Unions resolve unwanted CRE loans – both performing and distressed. Gelde is a recognized facilitator of CRE loan resolution services. Named the 2017 New CUSO of the Year by NACUSO, CU Revest is an asset management CUSO with a 30-plus year history of helping Credit Unions easily manage and monetize their distressed and charged-off member debt. As collaborating organizations, Gelde and CU Revest are building upon and expanding services that help Credit Unions reset their CRE portfolios and improve capital positions while mitigating or eliminating risk.
Here's how it works:
• When a Credit Union determines that a CRE loan or portfolio of loans has become undesirable as an earning asset (whether distressed or not), Gelde Advisors will work with the Credit Union, pursuant to a non-disclosure agreement, to set out a preliminary resolution plan.
• Upon the Credit Union’s approval and agreement with the preliminary resolution plan, Gelde Advisors will arrange for a whole loan sale with CU Revest, subject to its approximate 60 to 90 day due diligence, an amended non-disclosure agreement and a letter of intent to purchase the loan or loan portfolio.
• At the conclusion of CU Revest’s due diligence, a final resolution plan will be presented to the Credit Union. The resolution plan sale price is expected to be 100% of the CRE loan’s unpaid principal balance and will specify the anticipated period of time to achieve full recovery.
• During its due diligence period, CU Revest will identify and work with qualified investors to determine their interest and commitment to engage in the real estate property or project. Identification of an interested investor will be critical for the development of a resolution plan.
• After due diligence, the loan sale will be closed and CU Revest will assume all credit risk. In exchange and to the extent allowed by regulation, the Credit Union will receive a Tier III interest in CU Revest’s CUSO. A Tier III interest conveys upon the Credit Union a non-voting interest in the CUSO while giving it rights to expected cash flows.
• After closing of the loan sale, CU Revest will be responsible for managing resolution of the transferred CRE loan(s) through (a) loan modification or re-write, (b) introduction and involvement of a third-party investor to assist in completion of a project, (c) loan foreclosure procedures or (d) loan sale services.
• Regardless of the course of loan resolution taken, CU Revest will work with the Credit Union member/borrower in a fashion that will be helpful to maintain or improve its long-standing relationship with the Credit Union.