ADA, Mich. — CUSO Development Company, LLC, a national holding company CUSO specializing in providing mortgage services to credit unions announced that Bellwether Community Credit Union of Manchester, N.H., Belvior Federal Credit Union of Woodbridge, Va. have become Class A investors and City of Alexandria Employees Credit Union of Alexandria, Va. has become a Class C partner.
"When dealing with a commodity such as a first mortgage, unless credit unions have the same competitive advantages as much larger ones, the industry as a whole will never be a primary source for member home financing", said Cory Mackwood, a founder and principal of CDC.
"The mortgage relationship results in greater accounts per household as well as significantly higher average deposit and loan balances," said Tom Davis, co-founder of CDC. "First mortgages should be treated as a core product by credit unions as they can drive value to the member and profitability to the credit union."
Recommended For You
Mackwood also noted that, "As the Federal Reserve continues to reduce short term interest rates it places even more pressure on the traditional credit union financial business model. Credit Unions must collaborate to increase non-interest income including those associated with mortgage lending and real estate services."
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
