Central Star Financial Solutions: FS Vendors’ Vendor of the Week

What is your company name?

Central Star Financial Solutions

Please give a short bio of your company

Central Star Financial Solutions is a CUSO (Credit Union Service Organization), and is a wholly-owned subsidiary of Central Star Credit Union in Wichita, Kansas. The CUSO was created to offer mortgage and insurance products to credit union members and the community.

When was your company started?

April 2011

What is your targeted market?

Small to mid-size credit unions

Who is your competition, and what do you do better?

Other mortgage providers. However, we have a definite niche that no one else has, which is providing mortgage origination services to small credit unions in Kansas. We utilize the services of other mortgage CUSO’s, so we do not compete with them. We do not compete with large credit unions, as their members are well-served in mortgage lending.

How many current customers do you have and what is your estimated yearly growth?

We currently partner with 13 credit unions to provide their members mortgage services. We expect at least 6 more credit unions to partner with us by April, 2013.

What types of products and/or services do you offer?

Mortgage origination services and an independent insurance agency. Most small and mid-size credit unions cannnot offer mortgage services to their members due to lack of funds, lack of staff, and/or regulatory burdens. By partnering with us, a credit union can provide mortgage expertise to its members.

How do you see your company in the next 2-5 years?

Our mortgage loan officers will become licensed in surrounding states, so that we may serve credit unions that are near the borders of Kansas and that serve members in other states. We also expect to offer our partner credit unions a convenient way to provide insurance services to their members.

How many employees and/or freelance contractors do you currently have?

We currently have three full-time employees and one full-time contract employee.

How much does your company embrace risk?

We do not provide any risky mortgages to consumers, and in fact, use each credit unions’ underwriting guidelines for mortgages that they retain. The risk we have embraced is marketing. CSFS determined that in 2012, we would begin talking about our services to Kansas credit unions. We also provide some basic marketing pieces to our partners, such as statement stuffers, posters, and newsletter articles, as a signing bonus with CSFS.

What has been the biggest challenge you have had to overcome as a company?

The biggest challenge during 2012 has been to determine what kind of mortgage volume will be generated by partnering with credit unions, and thereby understanding if and when to hire more staff in order to provide excellent service.

What else is interesting about your story?

Our business model. Our intent is to serve not only credit union members, but small and mid-size credit unions. We recognize that small credit unions and their members are often left out of mortgage services. Our hope is to increase the market share for credit unions in Kansas for mortgage lending.

Do you have a blog, Facebook page, Twitter account, etc.?

We have a Facebook page and a website. Credit union members may apply for mortgages or inquire about insurance from our website at www.csoptions.com.