New CUSO Formed

Register now

RICHARDSON, Texas - (09/12/05) - Texans Credit Union has formed a CUSOcalled CU Commercial Services, LLC. The $1.5-billion Texans CreditUnion said that the new CUSO, combined with another wholly-ownedsubsidiary, Texans Commercial Capital, will offer an outsourcedloan participation program to credit unions. "Credit unions areunder increasing pressure to maintain net interest margins andprofitability while lending opportunities dwindle. As a result,many CUs are looking to member business loans to add yield with'acceptable' risk," said CUCS CEO David Radman. "CU CommercialServices offers a benefit to credit unions by offering highlydiverse portfolios of high-yield, low-risk mortgage assets withouthaving the in-house expertise (and fixed costs) required tooriginate and service their own portfolios."

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER