How Credit Unions Can Compete in Embedded Secured Lending

CUCollaborate, LoanStar, and GreenLyne Have Teamed Up to Bring HELOCs to the Point of Sale.

The Rise of Embedded Secured Lending explored how credit unions can compete with fintechs and national lenders by embedding HELOCs directly into home improvement and elective medical sales. With contributions from LoanStar and GreenLyne, the session laid out a clear path for how credit unions can integrate this new lending channel without heavy lift—bringing local lending back to local communities.

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Why Embedded Secured Lending Is a Game-Changer for Credit Unions

Today’s consumers are used to instant credit decisions, often at the point of sale, through fintechs like Affirm and Klarna. But those models typically focus on small-dollar, unsecured loans. What happens when the transaction is $25,000 for a roof repair or $60,000 for a new accessory dwelling unit?

As explained by Geoff Foytack, VP, Channel Partner Sales at LoanStar:

“These loans are already happening in your backyard—but they’re being captured by big banks and fintechs. Credit unions can absolutely win in this space, but they need the right infrastructure.”

That’s where CUCollaborate’s data tools, GreenLyne’s underwriting engine, and LoanStar’s LOS integrations come in. Together, they make it possible to originate and deliver HELOCs in real-time—while maintaining member-centric service and compliance.

How Embedded Lending Works: A Modern HELOC Experience

LoanStar acts as the “digital rail” connecting contractors or merchants with credit union lending. GreenLyne powers the experience with a cloud-based underwriting and decisioning engine that:

• Instantly pulls AVMs, credit reports, and title data
• Applies the credit union’s custom rate sheets and credit box
• Verifies income via bank statement data
• Determines an optimal loan amount based on actual cash flow
• Wraps loans with hardship insurance that covers up to 8 months of payments per year

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According to GreenLyne’s Sid Mansur:

“We’re taking all the tech that fintechs have used to dominate this space and giving it back to mission-driven lenders like credit unions—without sacrificing the human touch.”

Flexible Delivery, No IT Lift

The panel emphasized that integration is minimal thanks to cloud-based infrastructure and pre-built LOS connections.

“Once the credit union shares their underwriting criteria and rate card, we handle the rest,” Sid said. “There’s no internal IT lift, and onboarding can be done in a matter of weeks.”

Geoff noted that for credit unions already working with small business members—such as roofing or HVAC contractors—this can be a powerful way to deepen relationships and offer a valuable point-of-sale lending option.

Targeting LID and CDFI Areas

CUCollaborate’s APIs also run address checks during the application flow to determine if the borrower lives in a Low-Income Designated area or CDFI investment zone. This allows credit unions to target growth where it matters most.

By serving LMI homeowners with flexible secured credit lines, credit unions can support their mission while increasing lending volume. “There’s nearly $3 trillion in untapped home equity in these markets,” Sid explained.

Q&A

What happens if a borrower doesn’t complete the full digital application?
Incomplete applications are still routed to the credit union via LOS with enough info for a loan officer to follow up. No leads are lost.

What if the borrower can’t link their bank account for income verification?
GreenLyne still sends the file downstream, and the credit union can pick up the process with a live loan officer.

How is work quality guaranteed if a contractor is involved?
Borrowers—not merchants—receive the loan funds directly. They only pay the contractor once the work is completed to satisfaction.

How can credit unions increase CDFI-qualified lending?
Start by onboarding contractors who already serve CDFI-eligible areas. Then use embedded HELOCs to offer secured loans that meet community needs with flexible ticket sizes and built-in protections.

A New Lending Channel That Aligns With the Credit Union Mission

By embedding secured lending at the point of sale, credit unions can:

✅ Reclaim market share from fintechs and national lenders
✅ Expand reach into underserved communities
✅ Strengthen SEG and small business relationships
✅ Unlock new sources of membership and non-interest income

“This isn’t just a new product—it’s a new channel,” Ben emphasized. “And it’s one that aligns perfectly with the mission and member-first focus of credit unions.”

Ready to learn more?
If you're interested in adding embedded HELOC lending to your credit union's growth strategy, CUCollaborate, LoanStar, and GreenLyne are ready to help.

📅 Book time with Ben to discuss your credit union's embedded strategy