KEENE, N.H. – Northeast Members Business Services LLC, an eight-year-old CUSO announced plans this morning to wind down its business and distribute its capital to its six New England credit union owners.
Scott Sanderson, president and founder of the CUSO, said he believes the momentum in the credit union industry is moving towards in-house MBL lending so now is a good time to wind down. “Ultimately we came to the conclusion it was a great time to get out of the business,” Sanderson told the Credit Union Journal this morning.
The CUSO was founded in 2004 and since then has taken on 20 credit union partners, most of them in New England, but a few in California, underwriting $1 billion in MBLs during that time. In contrast to many other MBL CUSOs, which focus on real estate loans, Northeast underwrites small business loans.
Sanderson emphasized that the business is profitable and has been for the past three years.
Plans call for a distribution of the CUSO’s equity, put most recently at $2.7 million, around mid-year 2013 to its six owners: Workers CU, RTN FCU, Metro CU, HarborOne CU, Westerly Community CU and Heritage Family CU.