PORTLAND, Ore. (10/26/12)--CU Business Group (CUBG), a business services credit union services organization based in Portland, Ore., has signed on 28 new credit unions in this year, and now services more than 400 credit union clients in 44 states.
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CUBG's new credit unions range in size from $18 million to $50 billion in assets. The company averages three new credit union sign-ons per month, it said.
"Our organization is set up to help credit unions of any size with their business services needs," said Larry Middleman, CUBG president/CEO. "That can mean anything from helping them get their program off the ground to performing a third party review of their entire portfolio, and everything in between."
CUBG recently started offering many services a la carte rather than as part of a product package.
"One credit union may need help with every step of underwriting, loan docs and servicing, while another may simply need to use us as a backroom processor to get the financial spreads done," Middleman said. "Likewise on the deposit side, a credit union may need our whole package of treasury management services--including systems, policies, and procedures; another may simply be looking for a sample policy template. Either way, we can help."
In an average month, CUBG's underwriters review $50 million in member business loans (MBL) and $25 million in participation loans for credit unions. The CUSO also performs 60 annual reviews and prepares an average of 120 sets of loan documents each month.
CUBG continues to see increased interest in Small Business Administration lending and participations, and the need for independent third party reviews of MBL programs and portfolios.
The Credit Union National Association (CUNA) and credit unions are urging Congress to increase credit unions' MBL cap to 27.5% of assets from 12.25% so that more loans could be made to small businesses, which are considered a key to improving the economy. CUNA and credit unions say that increasing credit unions' MBL cap would open up more opportunity to offer MBLs, inject $13 billion in business loans into the economy and create as many as 140,000 new jobs, with no cost to taxpayers.