TUKWILA, Wash. – Three years after it was formed as a wholly-owned CUSO of Boeing Employees' Credit Union to offer credit unions a streamlined Internet lending solution, Prime Alliance Solutions has filed a private placement memorandum with its credit union and CUSO members to offer them the opportunity to become part-owners of the CUSO. Prime Alliance Solutions President/CEO Joe Brancucci said the decision to "dilute" Boeing Employees' Credit Union's ownership of Prime Alliance and allow other credit unions to have an ownership in the CUSO was made to "broaden the alliance." Since 2000, Prime Alliance has garnered 62 credit union and CUSO customers – including 30 of the top 100 credit union mortgage lenders. Its latest member was Alaska USA FCU and its subsidiary Alaska USA Mortgage Company which joined in July (CU Times, July 23). According to Brancucci, 10 Prime Alliance members already own "a little bit" of stock in the company, but BECU has remained the majority owner. Since the CUSO was formed, Brancucci said a number of Prime Alliance customers have expressed interest in having an ownership stake in Prime Alliance. The timing of the offering also has to do with the CUSO's strategic plans. Brancucci said Prime Alliance was formed with the intention of eventually becoming a multi-owned CUSO, and it was one of the reasons it was formed as a C-Corp. Another reason cited by Brancucci for the offering was the CUSO wanted "to share its growth returns" with its customers. In July, Prime Alliance Solutions released its results for the first half of the year, and based on that data the CUSO was on track for having an exceptional year. In the first six months of 2003, Prime Alliance credit unions took in 55,813 mortgage loan applications for about $9.0 billion. In the entire year 2002, the CUs generated 37,100 applications with an estimated value of $6 million. In June, Fannie Mae renewed its strategic agreement with Prime Alliance until 2011. Their current alliance was due to expire in 2006. The Prime Alliance Solution features Fannie Mae's Desktop Underwriter product. Brancucci said he expected to hit the minimum subscription level of owners designated by the Prime Alliance Board of Directors by the end of October or beginning of November. At that time, BECU will retain about 53% ownership of the CUSO. -

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