CUSO Offers 'Concierge' Service for Business Lending

A Philadelphia-area CUSO has launched a service to help small credit unions get started with commercial lending.

Member Business Financial Services (MBFS) announced Tuesday that it has expanded its offerings to act as a business loan originator on an as-needed basis

MBFS CEO Mark Ritter said its Concierge Relationship Manager Services were designed to fit credit unions that do not have the size or demand to justify a full-time business loan originator, but would like to offer business loans to members.

“MBFS is focused on ensuring that small and medium-sized credit unions can offer small business loans at a reasonable cost structure,” Ritter said.

While the credit union will be required to make a credit decision on the loan, MBFS staff members can work with the loan prospect throughout the entire process, from initial conversation to underwriting and closing.

“Every credit union has members with business loans needs,” he said. “Under this structure, credit unions and members have access to an experienced staff member to help walk them through the loan process.”

The MBFS news release said the service is targeted at credit unions with less than $250 million in assets.

A CU Times analysis of NCUA data showed:

• The 3,896 credit unions with less than $250 million in assets collectively had $208.5 billion in assets as of March 31, or 9.7% of the movement’s $2.14 trillion in assets. But they held just $5 billion in commercial loans, or 4.2% of the national total.
• The remaining 1,111 credit unions with $250 million or more in assets held $119.4 billion in commercial loans as of March 31, or 90.3% of all commercial loans.
• Loan growth for the smaller credit unions was 15.5% over the previous 12 months, compared with 20.4% for the larger ones.
• Commercial loans accounted for 4.8% of total loans held by smaller credit unions, compared with 9.5% of the loan portfolio for the larger ones.

MBFS, formed in 2008, now services more than $2 billion in business loans and has partnered with over 80 credit unions nationwide. Its 12 credit union owners held $9.2 billion in assets and served 641,290 members as of March 31. They held $1.5 billion in commercial loans on March 31, up 73% from a year earlier and accounting for 24% of their total loans.

The 12 credit unions are:

1. American Heritage Federal Credit Union, Philadelphia ($4.1 billion in assets, 254,177 members), which had $967.8 million in commercial loans on March 31, up 60% from a year earlier and accounting for 34% of its total loans.

2. American Spirit Federal Credit Union, Newark, Del. ($81.4 million in assets, 13,225 members), which had $12.8 million in commercial loans on March 31, down -1.7% from a year earlier and accounting for 41% of its total loans.

3. Century Heritage Federal Credit Union, Pittsburgh ($212.2 million in assets, 17,988 members), which had $20.8 million in commercial loans on March 31, up 132% from a year earlier and accounting for 18% of its total loans.

4. Choice One Community Federal Credit Union, Plains Township, Pa. ($126.1 million in assets, 10,957 members), which had $4.7 million in commercial loans on March 31, up 25% from a year earlier and accounting for 6.4% of its total loans.

5. Discovery Federal Credit Union, Wyomissing, Pa. ($181 million in assets, 8,585 members), which had $15.8 million in commercial loans on March 31, up 22% from a year earlier and accounting for 18% of its total loans.

6. Eagle One Federal Credit Union, Claymont, Del. ($97.7 million in assets, 9,431 members), which had $11 million in commercial loans on March 31, up 20% from a year earlier and accounting for 23% of its total loans.

7. Erie Federal Credit Union, Erie, Pa. ($737.7 million in assets, 68,870 members), which had $40.3 million in commercial loans on March 31, up 56% from a year earlier and accounting for 11% of its total loans.

8. Launch Credit Union, Merritt Island, Fla. ($1.1 billion in assets, 75,961 members), which had $144.8 million in commercial loans on March 31, up 472% from a year earlier and accounting for 16% of its total loans.

9. People First Federal Credit Union, Allentown, Pa. ($869.8 million in assets, 71,602 members), which had $52.2 million in commercial loans on March 31, up 21% from a year earlier and accounting for 13% of its total loans.

10. Service 1st Federal Credit Union, Danville, Pa. ($616.7 million in assets, 37,418 members), which had $43.9 million in commercial loans on March 31, down 2.8% from a year earlier and accounting for 9.5% of its total loans.

11. Sun East Federal Credit Union, Aston, Pa. ($817.2 million in assets, 52,620 members), which had $125.5 million in commercial loans on March 31, nearly triple its holding from a year earlier and accounting for 18% of its total loans.

12. Wes-Aircomm Federal Credit Union, Beaver, Pa. ($304 million in assets, 20,456 members), which had $35.2 million in commercial loans on March 31, up 88% from a year earlier and accounting for 17% of its total loans.