Wescom CU Builds Mortgage Bank

PASADENA, Calif. – Wescom CU, which has been expanding its non-depository business, said Friday it has agreed to acquire CU West Mortgage, a CUSO owned by the California CU League, WesCorp FCU and several credit unions. The $3.7 billion credit union plans to merge the Rancho Cucamonga-based mortgage operations into CUSO Mortgage Inc., an Anaheim-based lender it acquired last year. The move comes amidst upheaval in the mortgage market, with the biggest mortgage bank for credit unions, PHH Corp., which acquired CUNA Mutual Mortgage, in the process of being acquired by a private equity fund. Wescom CU has also begun to acquire credit union credit card portfolios in an effort to build its own credit card bank for credit unions. CU West Mortgage was founded in 2003 by the California League and Orange County Teachers FCU. Wescom plans to retain all 11 CU West employees, including CEO Mark Hiatt, and relocate its operations to Anaheim. The deal will give Wescom customer relationships with 130 credit unions in California, Nevada, Oregon and Washington.