San Antonio CU Builds New CUSOConcept

LAS VEGAS - (05/11/05) – San Antonio CU, the building ofa several successful CUSOs, is manufacturing a new one. The creditunion’s new CU Factory Building Lending LP is utilizing afranchise and correspondent model to to bring manufactured home(mobile home) lending to credit unions. The new wholly owned CUSOis making loans in 39 states and plans to eventually securitize theloans, according to Stephen Hennigan, president of the CUSO. The$1.8 billion credit union adopted the national model for its newestCUSO, rather than a regional or statewide one, because they feltthere was not enough business in a single regional to support theoperation, Hennigan told The Credit Union Journal. SA CU has alsodeveloped successful CUSOs for indirect lending, helping it becomethe nation’s biggest indirect originator of auto loans amongcredit unions, and and of alternative housing mortgages, amongothers.