Troubled Texans CUs MBL CUSO Bails Out Of Ailing Development
SAN ANTONIO, Texas – Credit Union Liquidity Services LLC, the member business loan CUSO owned by Texans CU, has agreed to sell a long-dormant real estate development on the city’s west side, one of a number of troubled projects financed by the CUSO.
The Stevens Ranch, one of two major local developments put on ice during the real estate bust, was sold by CU Liquidity, formerly known as Texans Commercial Capital, to a Dallas developer who plans to resume construction as many as 4,000 homes on the 1,300-acre development.
The Texans-owned CUSO had lent $36 million to Chicago developers, Navigators LLC, in 2006 to build the project, but foreclosed on the loan in 2008 when the economy soured.
Bad MBLs made by the CUSO, which has financed ill-fated large-scale projects in the Chicago suburbs, in Dallas and elsewhere, has caused major financial problems at the one-time $2 billion Richardson-based credit union, which reported of $51.9 million for 2009 and of $15.6 million for the first nine months of 2010.