Building on its previous success and experience with purchasing credit union credit card portfolios, TMG Financial Services has announced it will do something similar for other CUSOs seeking credit lines.
The CUSO, which is a subsidiary of the The Members Group and affiliated with the Iowa Credit Union League, has long given credit unions the opportunity to invest in its purchase and management of CU credit card portfolios called the Collateralized Advance Program and this new CUSO effort, which it calls CU Structured Finance, will build on that idea, according to TMG Financial Services CEO Jeff Russell.
"Credit unions have more liquidity than ever before and qualified loan demand is soft," Russell said. "CU Structured Finance is adding the surplus liquidity to a need resulting from a shifting and greatly diminished corporate network. As it stands today, there is no industry conduit to promote partnerships among credit unions outside of their own geographic regions."
Russell said that many corporate credit unions, in the wake of the corporate crisis, have been reeling back the credit lines for CUSOs--particularly lending CUSOs.
"CU Structured Finance will provide a way for a mortgage CUSO to have access to a warehouse line of credit for its business," Russell said. "Corporates used to provide this kind of loan, but they will no longer be able to do so."