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CUSOs partner to fund short-term mortgages
FAIRBORN, Ohio (3/25/11)--Two credit union service organizations have partnered to develop a line of credit funded by credit unions that will finance short-term mortgages. myCUmortgage and CU Structured Finance LLC created a mechanism to help provide funding for the mortgage CUSO’s growing market. “The new client growth and increased loan volume we have experienced at myCUmortgage over the past year has created the need for additional funding,” said Tim Mislansky, president of myCUmortgage. “We were challenged to find a cost-effective and operationally efficient method to obtain warehouse lines of credit.” CU Structured Finance LLC helps CUSOs secure and collateralize their debt needs. It was formed last September by TMG Financial Services to assist CUSOs that have seen traditional sources of funding shutdown during the past 18 to 24 months. “CUSOs like myCUmortgage have the opportunity to grow and serve more members than ever before, but they lack the necessary line of credit to make it happen,” said Jim Hansen, managing director of CU Structured Finance. “The company was created to provide access to financing similar to what the industry has relied on corporate credit unions to provide.” In the agreement, CU Structured Finance will provide third-party monitoring of the transaction and collateral. Together, the CUSOs have raised more than $13 million from nine credit union clients of myCUmortgage to help fund the short-term mortgages that the CUSO writes. “By offering our credit union clients the option to lend us money through a warehouse line of credit, we gain access to low-cost funds and the credit union benefits by obtaining a solid asset with a solid return,” added Mislansky. “It also reinforces the collaborative approach to the myCUmortgage business model.”


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