DES MOINES, Iowa–A new white paper has been released by TNG Financial Services that examines the CUSO’s support for the Collateralized Advance Program as it turns 10.
Benjamin Rempe, vice president of business development for TMG Financial Services, explains that CAP offers credit unions the opportunity to invest in the TMGFS credit card portfolio in exchange for competitive yields based on soundly underwritten assets. With funding from CAP, TMGFS purchases credit card receivables while collaborating with the seller to maintain a healthy, sustainable and cardmember-friendly program, the company noted.
“Credit unions have long subscribed to the idea that the best risk management is sound underwriting,” Rempe writes in a white paper outlining the program. “That is why a majority of the portfolio owned by TMGFS is considered ‘high-quality.’ Accounts have reasonable credit lines, and the average cardmember has a FICO score of 732. The CAP offering is a unique opportunity for credit unions looking for a values-centric, high-quality, sound investment.”
According to TMGFS, Today’s CAP is supported by more than 60 credit unions that have contributed more than $200 million. Those funds contribute to the ongoing health and sustainability of more than 120,000 cardmember accounts. With funding from CAP, TMGFS purchases credit card receivables while collaborating with the seller to maintain a healthy, sustainable and cardmember-friendly program. CAP investors receive competitive yields based on soundly underwritten assets.
Download the white paper “CAP: Innovative Investment Model for Consumer-Centric Organizations” on tmgfinancialservices.com.