Two credit unions have launched a CUSO to originate mortgages deep in the heart of Texas.

United Heritage Credit Union of Austin ($947 million in assets, 61,333 members) and Credit Union of Texas based in Dallas ($1.4 billion in assets, 137,519 members) have formed Texas Mortgage Lending, LLC, a full-service mortgage originator providing services to the members of both credit unions. Members using the CUSO will be able to review loan alternatives and apply for loans online.

Its operations will be housed at the CUTX branch at 601 North Plano Road in Richardson. It will allow the credit unions to originate mortgage to each of its members, while benefitting from economies of scale through shared costs and process optimizations between both credit unions.

“The relationship with Credit Union of Texas presents an enormous opportunity for United Heritage Credit Union to increase its potential growth rate while utilizing its already-existing resources and knowledge in the mortgage lending sector,” United Heritage CU CEO Buddy Schroeder said.

Eric Pointer, CUTX's president/CEO, said the CUSO will allow the credit unions “to retain highly experienced mortgage industry executives and staff who understand the credit union difference.”

The two credit unions held $556.2 million in first-lien mortgages on Sept. 30, up 7% from a year ago. Their second lien loans were $173.9 million, up 6%. Originations grew 47% in 2015 and 14% in 2016, but are down 23% for the first nine months of 2017, according to NCUA data.

CUTX's first mortgage portfolio stood at $218.4 million as of Sept. 30, up 17% from a year ago. Its second liens were unchanged at $122.6 million.

United Heritage's first mortgage portfolio was $337.8 million on Sept. 30, up 2%, while its second liens were $51.3 million, up 26%.

Total real estate originations for the credit unions last year were $144.4 million, accounting for nearly 4% of real estate loans granted by federally insured credit unions based in Texas.

Instant Insights /

Dallas & Austin Credit Unions Form Mortgage CUSO

Related Stories

Recommended For You