Industry News

Michigan credit union drops plans to convert to S&L

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Plans on the part of a credit union, the largest in Michigan and reportedly a major mortgage lender, to convert to a savings and loan have been dropped, the company said today.   Dearborn, Mich.-based DFCU Financial, a credit union with $1.8 billion in assets, has withdrawn its application to convert itself to a savings and loan, the company said.   DFCU, which has membership closely tied to the auto industry, had hoped to protect its long-term prospects from the decline in the sector by turning itself into a mutual savings bank still owned by depositors, eventually selling 49 percent of the bank to the public, reports said. It would have been the nation's largest credit union conversion, reports said.   The credit union, which sources said is "primarily a mortgage lender," said in a statement that it made the decision based on "member feedback."   "The DFCU Board of Directors made this decision based upon member feedback and the level of misinformation that has res...