EUGENE, Ore. — Oregon Community Credit Union issued a $307 million auto asset-backed securitization in August, joining at least five other credit unions that have tapped the securitization market this year, according to Auto Finance News.
The $3.7 billion credit union brought the prime auto ABS transaction to market Aug. 17, Auto Finance News reported, citing data from CreditFlow, which tracks securities transactions.
OCCU President and CEO Greg Schumacher told Auto Finance News that investor interest in the transaction was strong and in line with the credit union’s expectations.
“We believe this was an opportune moment to access the market given favorable conditions and our ongoing commitment to maintaining diverse funding sources,” Schumacher said.
Loan Pool Shows Stronger Credit Characteristics
The collateral backing OCCU’s latest securitization included a substantially larger share of new-vehicle loans than a similar transaction completed by the credit union in August 2025, according to a KBRA presale report cited by Auto Finance News.
New-vehicle loans accounted for 46.99% of the 2026 pool, compared with 19.1% in the 2025 transaction. Used-vehicle loans represented 53.01% of the latest pool, down from 80.9% a year earlier.
Other credit characteristics also strengthened.
The weighted average FICO score of borrowers increased to 751 from 733 in the 2025 securitization, while the weighted average annual percentage rate declined to 7.54% from 8.4%.
The weighted average loan-to-value ratio fell to 98.3% from 113.12%, according to KBRA.
Borrowers whose loans were included in the latest transaction were required to have credit scores of at least 660.
OCCU Auto Lending Approaches $1.7 Billion
OCCU’s auto loan portfolio totaled nearly $1.7 billion as of July 31, an increase of 18.5% from the end of 2025, according to the credit union’s July financial statement cited by Auto Finance News.
The Eugene-based credit union finished 2025 with $1.4 billion in auto loans outstanding, ranking it 114th among all auto lenders, according to Auto Finance News’ Big Wheels rankings.
OCCU’s transaction comes amid increased securitization activity by credit unions in 2026.
Auto Finance News reported that at least five other credit unions or credit union-related organizations have issued auto ABS transactions this year, according to CreditFlow.
American Heritage completed a $251.4 million prime transaction July 15, while Pentagon Federal issued a $353.6 million deal June 11. Space Coast completed a $400 million transaction April 16, First Community issued a $316 million deal Feb. 18, and Corporate One Federal completed a $323.3 million transaction Jan. 14.
Prime Borrowers Show Greater Resilience
The credit union securitizations generally are backed by loans to borrowers with stronger credit profiles, which could provide some protection from continued pressure on household finances.
Rahel Avigdor, managing director at KBRA, told Auto Finance News that prime borrowers tend to be homeowners and generally have greater liquidity and financial flexibility to absorb inflation-related pressures.
Subprime borrowers remain more exposed to rising rents and other increases in the cost of living, although the labor market continues to provide support, she told the publication.
“These borrowers are stretched, but continued employment and income can help support their ability to make payments,” Avigdor told Auto Finance News.
