RB Premier Services, LLC, and affiliate of Randolph-Brooks Federal Credit Union (RBFCU), is now part-owner of CU Appraisal Services, a company managing the mortgage appraisal process and mitigating risk for credit unions.
CU Appraisal Services became the only appraisal management company in the country to become a credit union service organization (CUSO) when Kemba’s CU Advantage obtained a partial ownership share in February of 2016.
“Securing shares of this company is a great investment for us,” RB Premier Services (San Antonio) Senior Vice President Edward Bronnenberg said in the company’s press release. “I was struck by their dedication to the credit union business model, and the creative impulse behind establishing CU Appraisal Services as the first AMC CUSO. There is clear market opportunity for financial cooperatives who support credit unions in this fast-growing segment.”
“It is difficult to compete with the efficiencies and protection that an appraisal management company offers. As the demand for residential mortgages and commercial lending grew, so did the burden of running our own in-house management and compliance group,” RBFCU CFO and Executive Vice President Robert Zearfoss said. “Keeping the valuation process running smoothly and reliably was a challenge: vetting and managing a roster of appraisers; remaining current on the constantly-changing state and federal regulations and licensing requirements; reviewing for quality and compliance; providing administrative oversight; and maintaining the required documentation and records.
“Since CU Appraisal Services assumed the appraisal management role for Randolph-Brooks, in May, we have seen a measurable benefit from a simplification, reliability, and cost standpoint,” Zearfoss added.
Since February, CU Appraisal Services has been strategically working to develop right-fit relationships with potential CUSO partners who also believe in transparency and community-building in the credit union mortgage lending space. Within the next 20 months, the majority of the company will be owned by credit unions.
“We are pleased to welcome Randolph Brooks as our newest CUSO partner,” CU Appraisal Services Executive Chairman Ron Stickelman said. “We were impressed with their talent and professionalism — they were just the partner we were looking for. Their innovative vision and progressive approach to finding new and better member solutions has resulted in tremendous growth for them over the last few years, and we look forward to their contributions to our culture and business model.”