WARRENVILLE, Ill. – Members United Corporate FCU, which reported a $511 million loss last week, said it is shedding another CUSO as part if its cost-cutting.
The $9 billion corporate plans to spin off Nextworks, LLC, a company that helps credit unions innovate. As a result, Nextworks, whose funding runs out on June 30, is looking for new funding from credit unions.
The move comes less than two weeks after Members United shut down its Member Health Networks CUSO, which helped credit unions implement Health Savings Accounts.
Members United also reported last week it expects to book a loss of about $9 million on its mortgage CUSO because of loans it made to the now-defunct Central States Mortgage Co.
Members United has been struggling with several cost-cutting measures to help it cope with expected losses on its mortgage-backed securities. The corporate reported last week that unrealized losses on its mortgage securities had increased to more than $2.3 billion.
Those losses caused Members United to take a $266 million charge on the portfolio, as well as a charge of $234 million related to the failure of U.S. Central FCU–creating most of the $511 million loss.
