July 2010

Statement on the Future of Services  

After over a year of study, analysis, and numerous member credit union town hall meetings, Midwest Corporate Federal Credit Union (Midwest) has received direction from its members on how services will be provided in the future.  Services will be provide through a CUSO, ProDraft Services, Inc. (ProDraft), who will work with a third party settlement institution to provide most of the services now delivered by Midwest.  The benefits of this delivery channel is that there will be no capitalization requirements for participating credit unions, services will still be coordinated through a credit union entity, and the cooperative pricing employed by ProDraft will ensure reasonable pricing for services. 

Midwest continuing as an independent corporate credit union, or merging with one or more other corporate credit unions was considered, however, these options ran into the same issue, the unlikelihood of enough members willing to place additional capital into a corporate credit union.  Initial member meetings in August and September of 2009 were encouraging for member recapitalization, however, as time went on and more loses were incurred from the corporate credit union system, member support began to wane and it became evident that adequate recapitalization by members of Midwest would be unlikely.  The message has been loud and clear that members held no hostility or lack of confidence in Midwest, however, as good stewards of their member’s assets, many felt a fiduciary responsibility to not place more funds at risk in the form of capital deposits at a corporate credit union again. 

Shrinking Midwest’s assets was also explored, however, keeping settlement accounts would still require recapitalization and Midwest could not be confident of being able to be in full compliance with the proposed future regulatory capital ratio requirements. 

While this has been a difficult decision to eventually end Midwest’s participation in the credit union system after 68 years, in the end, it seems to be the only decision that is in the member’s best interest. 

What will happen now?

Midwest’s Board has approved a plan that outlines the orderly transition of member services from Midwest to ProDraft’s new credit union service program.  With the member’s cooperation, this transition will continue through the first half of 2011.  The transition has begun with a few member credit unions who volunteered to be among the first to participate in ProDraft’s program.  Scheduling of the remaining members is in the process of being developed. 

Once members transition away from Midwest, Midwest will cease to have a purpose and the members will need to decide its fate which includes merger or liquidation.  Liquidation would be the only option that could potentially return any remaining member capital deposits to the members. 

In the interim, all services continue to be provided by Midwest and qualifying deposits continue to be covered by the NCUA’s Temporary Corporate Credit Union Share Guarantee Program. 

Questions? 

Questions regarding Midwest’s plans and transition of services should be directed to Midwest’s president, Trudy Wise, at 800/852-2677. 

Questions regarding ProDraft’s new program for services should be directed to ProDraft’s president, Chad Bartosh, at 800/279-3738.   

May 15, 2009

Midwest Corporate FCU announced to its members today that it is a participant in the revised NCUSIF Temporary Corporate Credit Union Share Guarantee Program (TCCUSGP).

The Midwest Corporate Board and management reviewed the new Corporate CU Deposit Guarantee Program Agreement at a special meeting on 4/29/09.  The new guarantee agreement, in addition to allowing for the extension of the deposit guarantee period, revised nearly all of the restrictive language that caused concerns with the original agreement.  While the revised restrictions are essentially the same, the provisions to approach the NCUA for waivers has made the agreement much more acceptable and less restricting on future Board authority.  Therefore, the Board Of Midwest Corporate unanimously agreed to participate in the revised Corporate CU Deposit Guarantee Program. 

As of today, all deposits in excess of NCUSIF insurance limits (except for capital accounts and term deposits with maturities in excess of two years) are now 100% guaranteed under the terms of the program by the NCUSIF.  The fact sheet from the NCUA explains the program terms in more detail.  

The Board and management of Midwest Corporate thanked thier members for supporting the decision to not participate in the original program.  According to Midwest Corporate CEO, Doug Wolf, "We continue to believe that it was the appropriate decision to not participate in the original guarantee program.  However, the changes made to the program by the NCUA gives us the flexibility we felt we needed going forward and we are confident that participating in the revised program is the right course of action now."   

Midwest Corproate now makes Remote Branch Capture (RBC) affordable for everyone! From hardware, to software, to the actual deposit, we are your best choice.

Per Item Costs As Low As 1.1 Cents Per Item

When you transmit your electronic deposit file, the per item cost can be as low as 1.1 cents. (Even our paper check deposits are low cost at only 3 to 7 cents per item).

Merchant Capture Solutions

Midwest Corporate's RBC solution can accommodate merchant deposits as well, allowing your creidt union to more fully service your business account members.

Already Have RBC Equipment and Software?

Not a problem. Ask us how we can save you money by sending your files to us.

What About Hidden Costs?

There are none. Besides the per item fee, the only other costs are a per cash letter fee of $1.25 and a $40.00 monthly fee that enables us to get your deposit into our high-yielding overnight account quickly.

Call Us Now!

Call Chad Bartosh at 800/852-2677 now to find out how Midwest Corporate's RBC / Check Deposit Service can drive down your costs and improve your effecincies!

Electronic Bill Payment (eBP) is quickly becoming a service your credit union must offer to members - we have the solution!

More and more members are finding out that Midwest Corporate's eBP solution is inexpensive, but full of the features that will make your members even more loyal to your credit union.

Our eBP solution can be in palce within 60 days of signing the agreement.

Not a member of Midwest Corporate? Not a problem, $10.00 establishes membership and we can get you set up with our eBP solution at the same time you apply for membership!

So why wait, call Doug Wolf now at 800/852-2677 or e-mail him at wolf.doug@ndcu.org to find out how Midwest Corporate's eBP solution can work for you!