CUSOs Seek Operational Calm
As the birth of a new corporate credit union model emerges, the CUSOs owned by the three corporates that were recently placed under the NCUA's regulatory purview are reassuring their clients that service will remain in place for at least the next few years.
Constitution Corporate FCU, Members United Corporate FCU, and Southwest Corporate FCU were placed in conservatorship Sept. 24 by the NCUA. All were deemed undercapitalized, the agency said. The move makes way for the regulator's final corporate credit union rule.
Larry Middleman, president/CEO of CU Business Group LLC, said he spoke with NCUA officials the Monday morning after the conservatorship of two of the CUSO's eight corporate owners, Members United and Southwest Corporate. According to its website, the Portland-based business lending and deposit services CUSO received initial capital contributions for corporates to start CUBG. It has since become a financially independent and self-supported organization serving more than 340 CUs in 40 states.
"It's business as usual. We've been in close touch with the corporates. Our board is intact. [The NCUA] gave us every indication there will be no change in operation," Middleman said.