Two credit unions have launched a CUSO to originate mortgagesdeep 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 ($1.4billion in assets, 137,519 members) have formed Texas MortgageLending, LLC, a full-service mortgage originator providing servicesto the members of both credit unions. Members using the CUSO willbe able to review loan alternatives and apply for loans online.

Its operations will be housed at the CUTX branch at 601 NorthPlano Road in Richardson. It will allow the credit unions tooriginate mortgage to each of its members, while benefitting fromeconomies of scale through shared costs and process optimizationsbetween both credit unions.

“The relationship with Credit Union of Texas presents anenormous opportunity for United Heritage Credit Union to increaseits potential growth rate while utilizing its already-existingresources and knowledge in the mortgage lending sector,” United Heritage CU CEO Buddy Schroedersaid.

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

The two credit unions held $556.2 million in first-lienmortgages on Sept. 30, up 7% from a year ago. Their second lienloans 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 toNCUA data.

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

United Heritage's first mortgage portfolio was $337.8 million onSept. 30, up 2%, while its second liens were $51.3 million, up26%.

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