By: Deborah Johnson Wood
Ada-based CUSO Development Company recently launched its newest subsidiary, Member Advantage Title, and added two management positions, bringing the total number of employees to 25 since the company launched in December.
CUSO stands for Credit Union Service Organization. Ten employees at the Ada headquarters handle accounting, mortgage loan processing and closing and other mortgage services. The remaining employees are embedded in seven credit unions in other states, including Nevada, Virginia, Pennsylvania and Massachusetts.
CDC is a subsidiary of the credit unions, which allows them to pool resources and reduce expenses. CDC integrates with the credit unions, which each transfer an employee or two to CDC, thus reducing costs. That employee works alongside the credit union employees, but provides mortgage loans and services through CDC.
"The credit unions can’t afford to hire someone to run their mortgage department,” says Cory Mackwood, a partner in CDC with Tom Davis and Jim McCourt. “We buy the technology and pay for it once and use it with each partner, where they’d each have to buy it themselves. We can provide higher quality products and services because of the combined worth of the credit unions.”
That combined worth is about $2.5 billion in assets, compared to $200 million to $500 million for a single credit union.
CDC opens a new branch in Las Vegas this month. Mackwood expects to add another four credit unions by mid-2009. That will create a need for more staff in Ada.
“We look for markets where there’s a stream of people moving into the area,” says Mackwood. “That’s what creates a natural opportunity to sell your house and buy another one.”
Source: Cory Mackwood, CUSO Development Company
Deborah Johnson Wood is development news editor for Rapid Growth Media. She can be contacted at [email protected].
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