Mortgage CUSO Turns to Finance CUSO for Warehouse Credit
Two CUSOs have formed a partnership to help make more mortgage financing available to credit union members.
The mortgage CUSO myCUmortgage, a leading credit union mortgage lender owned by the $2 billion Wright-Patt Credit Union, announced its deal with CU Structured Finance, a financial CUSO owned by TMG Financial Services. TMG Finanical Services is the owner and agent issuer of credit union credit cards from CUs around the country.
“The new client growth and increased loan volume we have experienced at myCUmortgage over the past year has created the need for additional funding,” said Tim Mislansky, president of myCUmortgage. “We were challenged to find a cost-effective and operationally efficient method to obtain warehouse lines of credit. We’re excited to be able to develop a collaborative solution within our industry and to work with CU Structured Finance.”
“CUSOs like myCUmortgage have the opportunity to grow and serve more members than ever before, but they lack the necessary line of credit to make it happen,” said Jim Hansen, managing director of CU Structured Finance. “The company was created to provide access to financing similar to what the industry has relied on corporate credit unions to provide.”
The CUSO said their agreement called for CU Structured Finance to provide third party, arms-length monitoring of the transaction and collateral. Together, the CUSOs have raised more than $13 million from nine credit union clients of myCUmortgage to help fund the short-term mortgages that the CUSO writes.
“By offering our credit union clients the option to lend us money through a warehouse line of credit, we gain access to low cost funds and the credit union benefits by obtaining a solid asset with a solid return. It also reinforces the collaborative approach to the myCUmortgage business model,” added Mislansky.