In 2002, TCCU established the Credit Union Business Partners (BP) CUSO as a single-member California limited-liability corporation. The TCCU EVP acted as the CUSO’s registering agent and later became the CUSO’s CEO. The Chairman of the Board for the CUSO was also the TCCU Chief Executive Officer.
The model behind BP was to participate and service MBLs originated by owner credit unions, including TCCU. By 2010, seventeen credit unions held equity in BP although TCCU remained the majority shareholder. In 2007, TCCU purchased two additional CUSOs, AutoSeekers and Autoland.5 The CEO of AutoSeekers at the time was a related party to TCCU’s CEO. TCCU purchased AutoSeekers in April 2007 and disbanded it in December of the same year. Autoland showed consistent losses from the time of acquisition through conservatorship.
For the year ended December 31, 2007, TCCU posted both its highest total revenue and expense since at least 2002. The result was a net loss of approximately $13.5 million. The Credit Union posted consistent net losses throughout the remainder of its operating life, 2009 through 2011, with an average net loss of approximately $10.8 million per year.