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About MFCU > MFCU is 1 of 7 Credit Unions forming a Credit Union Trust!
MFCU is 1 of 7 Credit Unions forming a Credit Union Trust!
Authored By: Rachel Finney on 7/31/2018

MFCU Happenings! 

MFCU is 1 of 7 Credit Unions forming a Credit Union Trust!

A group of 7 prominent Michigan credit unions, including Members First Credit Union, have formally applied with the Michigan Department of Insurance and Financial Services to establish a new limited purpose financial institution that will provide trust services primarily to credit union members. Formal acceptance of the application kicks off a review process by state regulators that can last 100 days, at which time the organizers anticipate approval. Upon approval, Credit Union Trust will become the first such entity in Michigan organized by credit unions established to primarily serve the needs of credit union members. Our goal in forming this new organization is to be able to provide trust services to our members and all credit union members across Michigan. It is very exciting for us to be owners of Credit Union Trust - we will be making history in our state!

While credit unions routinely provide a range of wealth management services for their members, we are unable to directly provide fiduciary services such as trusts. Credit Union Trust will allow them to do so. It will offer investment, trust and related services primarily to members of the shareholder credit unions, as well as members of other Michigan credit unions. Though technically a bank (it will not make loans or accept deposits), it is also a credit union service organization that will be equally owned by the founding shareholders.

The credit unions making the application are: Alpena Alcona Area Credit Union, headquartered in Alpena with seven locations; Community Choice Credit Union, headquartered in Farmington Hills with 20 locations; ELGA Credit Union, headquartered in Burton with 11 locations; Frankenmuth Credit Union, headquartered in Frankenmuth with 23 locations; Honor Credit Union, headquartered in Berrien Springs with 24 locations; Members First Credit Union, headquartered in Midland with 11 locations; and Team One Credit Union, headquartered in Saginaw with 12 locations. 

Check out this article for more information!

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Comments
CLU, ChFC
8/29/2018 3:30 PM Ronald H. from Midland, MI
Aside from going into competition with lawyers and financial planners, this also dilutes the "member ownership" of this new aspect of credit unions. Members would no longer have a say in what this trust company does. In addition, it further blurs the lines between banks and CUs which would then require compliance with additional banking acts and regulations. As it does in Bank & Trust Companies, a trust arm also is a major conflict of interest as a trustee must be free to use which ever investment services he/she determines are prudent. MFCU already offers products for trustees to use at reasonable cost. The remaining services are legal in nature and more suited to a corporate (not member-owned) entity.
Reply From Members First Credit Union:

Ronald,

As community-based institutions, we always want to be able to say “yes” to our members and we always want to retain and maintain our relationship with each person.  Until the law changed 2016, members had no “credit union option” for trust services and had to go outside the credit union family to seek those services from a bank. 

Establishing the Credit Union Trust bank – whose shareholders are member-owned credit unions - allows us to provide a service and some additional opportunities to our members in a way we haven’t been able to do until now.  And remember… we’re credit unions – we’re community-based institutions -- and our focus is always on providing service to our members. 

We look forward to being able to offer our members a convenient, credit union inspired solution for trust and investment needs. Our commitment is to provide the finest trust and related services available at an affordable price while allowing our members to maintain and enjoy the personalized service and relationships they have built over many years.

Thank you,

Members First Credit Union 

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Members First Credit Union | P.O. Box 2165 | Midland, MI 48641
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