Inclusiv Secondary Market Purchase of Mortgage Loans Marks Major Milestone for Cooperative Lending in Puerto Rico
This quarter, with the successful closing of a $3.5 million mortgage loan purchase, Inclusiv marked the first purchase of a CDFI from the mainland of mortgage loans originated by a financial cooperative (“cooperativa”). This landmark deal will usher in capital to help cooperativas expand and grow their mortgage lending to Puerto Rican residents to build their wealth and ensure housing affordability and financial security.
Through its Secondary Market, Inclusiv facilitates the purchase and sale of mortgage, small business and solar loans through participations between Community Development Credit Unions including Puerto Rican cooperativas.
Inclusiv purchased $3.5 million of a $3.9 million pool of 40 mortgage loan participations originated by Cooperativa Jesús Obrero, providing low-cost liquidity to the Puerto Rico-based cooperativa. Cooperativa Jesus Obrero held the initial 10% enabling Inclusiv to off sell a portion of the portfolio to local credit unions (cooperativas) looking to build their balance sheets and support homeownership on the island.
“This is a significant milestone and a great example of our financial inclusion efforts. We created our Secondary Market as an outlet to enable credit unions to raise the liquidity needed to expand access to homeownership, affordable clean energy options, and small businesses opportunities in underserved communities. Inclusiv works with investors to raise capital so community development credit unions in the mainland and the Island continue to grow their high impact lending to improve the lives of low- and moderate-income families,” said Cathie Mahon, President/CEO of Inclusiv.
As part of its unique secondary market model where Inclusiv co-invests, a portion of the pool was retained in Inclusiv’s portfolio, and $3.1 million was resold to Cooperativa Rodríguez Hidalgo located also in Puerto Rico.
Inclusiv launched its Secondary Market program in 2007. In 2024 Inclusiv expanded its offering to include loan participations, providing credit unions and cooperativas opportunities to obtain low-cost liquidity and increase their lending through the sale of participations of mortgage, small business, and solar loans. In 2025, this program was adapted and launched for COSSEC-insured cooperativas in Puerto Rico.
This latest transaction represents a significant milestone for Puerto Rican cooperativas, expanding access to new liquidity sources outside of the Island and funding sources to expand their homeownership initiatives. So far, Inclusiv has acquired $7.1 million in loan participation pools from small business and mortgage loans in Puerto Rico, injecting much needed liquidity into the local credit union sector.
This milestone is the result of a long-term effort that included technical assistance, advocacy with the local regulator in Puerto Rico, and COSSEC’s issuance of an informative letter clarifying the regulatory treatment of loan participation transactions.
"This transaction between Inclusiv, Cooperativa Jesús Obrero and Cooperativa Cristobal Rodríguez Hidalgo mark a significant milestone for Puerto Rico’s cooperative financial system. The mobilization of capital and the infusion of liquidity strengthen the sector’s stability, expands its mortgage financing capacity, and reaffirms the strength and strategic vision that distinguishes our cooperatives," said Mabel Jiménez Miranda, Executive President of the Public Corporation for the Supervision and Insurance of Cooperatives (COSSEC).
“The acquisition of a $3.1 million participation in this pool of mortgage loans originated in Puerto Rico, executed through Inclusiv’ s Secondary Market, represents a strategic opportunity to further expand our mortgage portfolio and strengthen our presence in this key segment. This transaction not only advances our growth strategy but also reinforces our commitment to keeping liquidity within the cooperative system, supporting local economic development. We are grateful to Inclusiv and Cooperativa Jesús Obrero for their collaboration and leadership throughout this process. We are proud to be part of the first transaction of this kind in the Puerto Rico market, and we are confident it will be the first of many similar initiatives for the benefit of the cooperative movement and the communities we serve,”- Miguel Colón Robles, Executive President, Cooperativa Rodríguez Hidalgo
“Inclusiv’s Secondary Market for the purchase and sale of mortgage loans among Cooperativas is a strategic liquidity tool that strengthens the cooperative system by expanding the distribution of productive financial activity and enhancing portfolio diversification across regions, income segments, and employment sectors. It enables participating Cooperativas to acquire high-quality mortgage assets without incurring origination costs, while selling institutions can redeploy liquidity to support continued lending—without relinquishing the member relationship or servicing responsibilities,” - Aurelio Arroyo, CEO of Cooperativa Jesús Obrero
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