MBL Mutual Fund Debuts For CreditUnions
MADISON, Wis. - (07/28/05) -- CUNA Mutual Group plans to introducea new mutual fund comprised of member business loans to creditunions over the next few weeks. "We see this as a whole newsecondary market for credit unions," said Kevin Thompson, vicepresident for development for CUNA Mutual's financial solutionsgroup, of the CU Systems Fund. CUNA Mutual, which has seeded thefund with $25 million, has been buying member business loans fromcredit unions and has bought 15 loans totaling $6.5 million, sofar, Thompson told The Credit Union Journal. CUNA Mutual plans tobegin selling the shares in the fund once they hit the $25 millionmark, expected sometime later in the third quarter. Participationin the MBL fund was approved for federally insured credit unionsearlier this year by NCUA, which sees it as a potential source ofnew liquidity for credit unions. Thompson said they plan to go backto the agency in the coming months to ask for approval for a creditcard loan fund, then follow that up for separate funds comprised ofmortgage loans, car loans and community development loans. CUNAMutual is circulating a private offering document, or prospectus,to potential participants in the MBL fund.