Why should a credit union form a CUSO?
A CUSO should be formed if the goals of the credit union can best be served through a CUSO. For example, if the credit union desires to lower its costs in mortgage origination, it may decide to form a CUSO. By originating mortgages for other credit unions and the general public, the credit union’s overall processing costs per application should decrease and additional income will be earned. If a credit union wants to do its own item processing to save costs and further control its operations, it could combine with other credit unions and lower costs even further. If a credit union wants to become the primary financial institution of its members, the credit union may decide that a CUSO providing financial services, such as insurance, annuities, mutual funds or stock trading, conveniently and at a fair price will help solidify the membership’s relationship with the credit union. How does a credit union organize a CUSO? A credit union needs to approach the decision to start or join a CUSO
