What does it cost to hire an MBL CUSO?
One of the first questions prospective credit unions want to ask in an initial conversation is “what will this cost us”? Of course the answer is usually, “Well, that depends.” Realizing this answer may seem coy, or like a sales tactic, it’s really because the majority of our pricing is variable and dependent on the volume of work a credit union sends us. To illustrate this and help those of you who have questions about the costs associated with outsourcing an MBL program, the chart below provides reference points for credit unions with varying asset sizes and other key variables.
|Asset Size||$350 M||$600 M||$170 M|
|Number of CU Originators||4||1||1|
|Total $ Underwritten||$34,000,000||$15,000,000||$15,000,000|
|Number of Loans||196||53||32|
|Average Loan Size||$174,000||$283,000||$48,000|
|Total Fees Paid to MBS||$97,051||$24,125||$14,130|
The services provided in these three examples includes, underwriting, documenting, file maintenance and periodic reviews/portfolio monitoring. Clients also receive guidance with policies, pricing and marketing.
One advantage of having the work outsourced to a CUSO like MBS is that the staff involved are very experienced, likely providing a higher quality product than a credit union employee with 3 other job functions!