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What does it cost to hire an MBL CUSO?

Jim GallagherOne 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
Example of three different clients & actual annual volumes

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!


About the Author

Jim GallagherJim Gallagher is the President of Member Business Services. His responsibilities include the delivery of business products and services to credit unions. Business Services offers a wide range of products to assist credit unions in the development and expansion of their member business lending and deposit programs. Prior to joining Southeast, Jim had a successful 20 year career in commercial banking. The majority of his career was spent at Barnett Bank working in various capacities: as a commercial analyst, commercial lender, branch manager and business banker. In his most recent position as V.P. Business Banking Team Leader/Sales Officer with SunTrust Bank he consistently led the company in loan dollar volume and fee income production. In addition to sales, Jim also assisted with training and development of the retail sales force in his region. Jim holds a Bachelor of Arts degree from the University of Florida and has successfully completed core credit, commercial lending and retail management studies. He is a frequent guest speaker at regional small business conferences.View all posts by Jim Gallagher →