RANCHO CUCAMONGA, Calif. – CU Direct Corp., administrator of the Credit Union Direct Lending (CUDL) program, has secured its spot as the largest point-of-sale network for U.S. credit unions with the company's purchase of Indirect Services Inc. CU Direct and ISI began talking acquisition in May 2004, and the acquisition was finalized Oct. 15. Terms of the transaction were not disclosed. Based in Salt Lake City, Utah, ISI administers the DecisionApp Web-based indirect lending system that's designed to streamline the indirect lending process. The technology coordinates all indirect lending interaction with the dealership network and controls the entire indirect lending process from online dealer loan application submission to instant loan approvals to month end reports. ISI's focus has been on developing alliances between auto dealerships and financial organizations. According to CUDL, combined operations of the two companies will result in monthly activity of 50,000 funded loans and $900 million in financing. The acquisition increases the number of states CU Direct does business in from 17 to 32, and brings the number of dealers in the CUDL system from 3,000 to more than 5,700. "We believe a national indirect lending network for credit unions is important," said CU Direct President/CEO Tony Boutelle. "There are a lot of benefits to be derived through having an aggregation of credit unions at dealerships' point-of-sale. We can be that much more successful if we're in all 50 states, and our acquisition of Indirect Services Inc. is a big step in that direction," adding that the principals of ISI, who have been involved with the credit union industry for many years, feel similarly. ISI President John Arens, VP Brit Baker and all other company employees are now employees of CU Direct. Arens' new title is Vice President, and Boutelle said Arens "is part of the leadership team of CU Direct which continues to run and strategize for the company." Barker is the new CU Direct regional director for the Arizona and Utah area. Boutelle said he hasn't yet determined how large that area will be yet. CU Direct says "the larger, combined organization will continue to support CU Direct's goal of creating a national auto lending network for credit unions that will increase credit union auto loan market share, improve credit union loan and dealer processing efficiency, improve member satisfaction, help dealers sell more cars, and develop related products that are of value to credit unions, dealers, and members." Boutelle stressed that in the short term, CU Direct clients won't see any impact of the acquisition on day-to-day company operations. Even though CU Direct now owns ISI, he emphasized that it is "business as usual." However, one of the most immediate and visually obvious results will be the presence of the CUDL brand when DecisionApp users access the system. In addition, current DecisionApp users will be able to take advantage of CUDL services including education and training, risk management, marketing and continued dealer relation development. The long term goal is to create a common dealer interface on one platform for dealers to be able to see all the credit unions in their area that are involved with CU Direct. Boutelle said ISI has a different decisioning engine than the CUDL system, and the plan starting early in 2005, is for the CUDL staff to work with ISI staff to do a technology analysis with the goal of helping build and enhance a combined system that offers best-of-breed technology and services. Boutelle said that effort will start at the front end, dealership side of the system in the next few months to provide a common functionality between the ISI and CUDL system. The back end, workflow part of the system for credit unions will eventually be merged into that. "It will take some analysis and a bit of time, but for now nothing will change," said Boutelle. "Participating credit unions will see real benefits from our combined organization. They will strengthen their competitive position through the combined resources and expertise of the total organization." -

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