Seven Michigan credit unions are seeking to establish a new limited purpose financial institution designed to provide trust services primarily to credit union members.
“We have a long way to go and there’s much work to be done, but we’re very pleased and excited to be moving along in the application process,” said Scott McFarland, CEO of Honor Credit Union and spokesman for the organizers of the proposed entity, Credit Union Trust. “We’ll be working closely with state regulators to meet all requirements, and we look forward to being approved.”
The entities have formally applied with the Michigan Department of Insurance and Financial Services
Formal acceptance of the application process kicks off a review by state regulators potentially lasting 100 days, officials said, at which time organizers anticipate approval.
Officials said Credit Union Trust would become the first financial institution in Michigan organized by credit unions established to serve the needs of credit union members primarily, noting it would be headquartered in leased facilities at 31155 Northwestern Highway in Farmington Hills, Michigan.
“This is an important step for Michigan’s approximately 5.23 million credit union members and the industry as a whole,” McFarland said. “Over the years, many members have asked for trust services under the umbrella of our local, community-based credit union co-op model and now we hope to be able to serve them. Presently those members are forced to go elsewhere.”