New CUSO, Departments Debut To Offer Biz Lending

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Three more credit unions have expanded into business services.

Texans Credit Union has formed a CUSO called CU Commercial Services, LLC. The $1.5-billion Texans Credit Union said that the new CUSO, combined with another wholly-owned subsidiary, Texans Commercial Capital, will offer an outsourced loan participation program to CUs.

CU Commercial Services CEO David Radman said margin pressures have forced more CUs to add "member business loans to add yield with 'acceptable' risk." "CU Commercial Services offers a benefit to credit unions by offering highly diverse portfolios of high-yield, low-risk mortgage assets without having the in-house expertise (and fixed costs) required to originate and service their own portfolios," he said.

Radman joined the CUSO at its inception in July 2005. Prior to CU Commercial Services, he was a founding organizer of The Lonestar CAPCO Fund.

Also rolling out a new business services offering is the $160-million Illiana Financial CU, Calumet City, Ind., which is has opened a Business Services Department. Illiana Financial said it is the only credit union in its market with business loans and services targeted to small businesses. Wayne DeGraaf, who has more than 40 years of banking experience, including 25-plus years as CEO of three local community banks, will head the department.

In Austin, Texas, United Heritage Credit Union has also rolled out a business services operation. "United Heritage is offering commercial lending for equipment and vehicle loans, as well as business lines of credit, commercial real estate loans for owner or non-owner occupied buildings from small office buildings to industrial parks," the credit union said.

It is also offering three different business checking accounts, each of which offers a free VISA debit card, free 24-hour online access, free live in-branch and phone service, online access, and more.

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