San Antonio FCU, the builder of several successful CUSOs, is manufacturing a new one. The credit union's new CU Factory Building Lending LP is utilizing a franchise and correspondent model to to bring manufactured home (mobile home) lending to credit unions. The new wholly owned CUSO is making loans in 39 states and plans to eventually securitize the loans, according to Stephen Hennigan, president of the CUSO. The $1.8-billion credit union adopted the national model for its newest CUSO, rather than a regional or statewide one, because they felt there was not enough business in a single region to support the operation, Hennigan told The Credit Union Journal.
SACU has also developed successful CUSOs for indirect lending, helping it become the nation's biggest indirect originator of auto loans among credit unions, and of alternative housing mortgages, among others.
