Unsecured Risk
Weak collateral despite UCC-1 filings, with elevated NCUA risk weighting.
Solar Loan Solution
Solar loans turned into relationships.
Your institution originated or purchased thousands of residential solar loans in the last several years, most at interest rates below your marginal cost of funds. These loans were often marketed and underwritten by non-bank originators and have default and loss rates much higher than predicted, meaning your institution is losing money on every single loan.
$13.5B
in solar loans currently outstanding at U.S. credit unions
The problem
What credit unions are holding
Disengaged Members
Loans originated outside the credit union relationship.
Duration Risk
20-year terms and growing rate sensitivity.
Negative Spread
Below-market fixed rates compress net interest margin.
Our Solution
A simple partnership.
01
We Analyze
Using your portfolio data, under a compliant data-sharing agreement, we identify which members are strong candidates for a better refinance option.
02
We Reach Out, As You
Members are contacted under your credit union's name and brand, with every piece of marketing subject to your review and approval.
03
You Benefit, Either Way
Qualifying loans come back to your credit union first, generating new relationship value and revenue, or, where you prefer not to hold the loan, your credit union still benefits from the improved member outcome and relationship data.
Program Mechanics
How the program works
01
Due Diligence
Daylight reviews the full solar loan portfolio, stratified by rate, term, balance, CLTV, and credit profile.
02
Originate & Underwrite
Daylight originates, processes, and underwrites new home equity loans to your agreed credit metrics.
03
Funding & Escrow
Approved loans fund through a standardized escrow process, with the credit union and alternative lenders funding their respective buckets.
04
Servicing Transition
Daylight retains servicing under a licensed arrangement with documented policies for collections, escrow, and reporting.
05
Ongoing Reporting
Monthly reporting on origination volume, credit metrics, yield, and full portfolio roll-up.
Regulatory Framework
Compliance at every layer
NCUA Third-Party Oversight
Program controls align with NCUA third-party oversight expectations under SL 07-01.
GLBA Member Data & Privacy
Member information is handled with appropriate privacy safeguards.
TILA/Reg Z & RESPA
Consumer lending disclosures and settlement procedures are addressed throughout the process.
Servicing Authorization
Clear servicing permissions help support an orderly transition.
Fair Lending & UDAAP
Program design considers fair lending and consumer protection principles.
Licensing & Vendor Standards
Vendor and licensing requirements are incorporated into the operating model.