The third largest credit union in the United States has partnered with a mortgage services provider to form a multi-state title operation.

Pentagon Federal Credit Union, which has $13.4 billion in assets and some 900,000 members, recently partnered with Prime Alliance Solutions for form Prime Alliance Title LLC, which aims to offer title insurance services to credit unions across the country. Other affiliated companies include PenFed Realty, LLC, and Champion Title & Settlements Inc. Prime Alliance underwriters with Fidelity National Title Group.

“Prime Alliance Title LLC brings us another step closer to lowering the cost of homeownership for credit union members,” said Frank Pollack, president and CEO of Pentagon Federal Credit Union in a statement.

“Throughout our history, and especially in the last 24 months, credit unions have proven they are the affordable, trustworthy mortgage lender in their communities. Prime Alliance Title further enhances our industry’s value proposition and positions us to continually grow our share of the U.S. mortgage market.”

The new title agency began operations in early July, and is now “fully operational” in Virginia, D.C., Maryland, Delaware, Pennsylvania, New Jersey, New York, North Carolina, Florida and Colorado, the announcement said. It is pursuing licenses and relationships in order to provide national coverage by early 2010, according to the company.

Alexandria-based Pentagon Federal serves employees of the Department of Defense, the Department of Homeland Security and defense-related companies, as well as veterans.