Oregon Community Credit Union issued its first auto asset-backed securitization of 2026 in August, the latest in a string of transactions by credit unions this year.
OCCU came to market with a $307 million prime auto asset-backed securitization (ABS) deal on Aug. 17, according to CreditFlow, which monitors securities.
Strong investor interest in the transaction aligned with OCCU’s expectations, Chief Executive and President Greg Schumacher said in a statement to Auto Finance News.
“We believe this was an opportune moment to access the market given favorable conditions and our ongoing commitment to maintaining diverse funding sources,” he said.
New-vehicle loans comprised a larger portion of the deal’s collateral pool compared with an issuance OCCU made in August 2025, according to an Aug. 12 KBRA presale report.
The 2026 deal had a ratio of 46.99% new to 53.01% used, a swing from 19.1% new and 80.9% used in the 2025 deal, according to KBRA.
Other credit characteristics of the loan pool improved versus the 2025 issuance, according to KBRA:
- The weighted average (WA) FICO score was 751, up from 733;
- The annual percentage rate (APR) was 7.54%, down from 8.4%; and
- The WA loan-to-value ratio was 98.3%, down from 113.12%.
OCCU’s auto loans year to date totaled nearly $1.7 billion as of July 31, up 18.5% from Dec. 31, 2025, according to its July financial statement. The Eugene, Ore.-based credit union ranked 114th among all lenders for auto outstandings with $1.4 billion at yearend 2025, according to the latest Big Wheels rankings data.
At least five other credit unions came to market with auto ABS transactions in 2026, according to CreditFlow, including:
- American Heritage with a $251.4 million prime deal on July 15;
- Pentagon Federal with a $353.6 million prime deal on June 11;
- Space Coast with a $400 million prime deal on April 16;
- First Community with a $316 million prime deal on Feb. 18; and
- Corporate One Federal with a $323.3 million prime deal on Jan. 14.
The wave of credit union issuance reflects top-tier consumer credit. For example, criteria for OCCU’s deal required borrower credit scores of at least 660, according to the presale report.
Prime borrowers tend to be homeowners and generally have more liquidity and financial flexibility to absorb inflation headwinds, Rahel Avigdor, managing director at KBRA, told AFN.
Subprime borrowers remain vulnerable to rising rent and other cost-of-living pressures, although low unemployment provides some support, Avigdor said.
“These borrowers are stretched, but continued employment and income can help support their ability to make payments,” she said.
Lendbuzz issues nonprime-labeled deal
AI-powered fintech lender Lendbuzz also came to market in August with an inaugural securitization under its nonprime platform.
The $229.8 million deal is backed by a collateral pool with a higher concentration of near prime and subprime borrowers compared with Lendbuzz’s previous issuances, according to an Aug. 17 KBRA new issue report.
The proportion of used vehicles was flat in Lendbuzz’s latest issuance, at 84.72%, compared with a similarly sized ABS deal it made in January, while the pool overall shifted toward a higher-risk collateral profile:
- The WA LTV ratio rose to 110.68% in the nonprime deal, from 95.24%;
- The WA APR rose to 17.39%, from 16.29%; and
- The WA non-zero credit score fell to 631 from 659.
Lendbuzz could not be reached for comment.
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