"That caused us to think about it from a different angle and that maybe we should just have our own," he said. "At that point, it became a matter of what kind of mortgage company to go out and buy because we didn't want to start one from scratch."

Teaming up with its accounting firm, the Lathrup Village-based Michigan First looked at about 1,000 mortgage companies and brokers throughout the state and set its sights and due diligence on two firms.

Poulos said the credit union wanted a mortgage business that had an established customer base as well as a strong service culture that did lending the way Michigan First wanted lending to be done for their members.

Though both companies were excellent candidates, Poulos said his management team preferred the model of Watson Group Financial because it originated loans primarily with brokers, realtors and other real estate professionals in the community.

"In addition, they actually go out to anywhere where the [customer] is and take the application," Poulos said. "So, if the customer wants to meet at their kitchen table at 9 o'clock at night, they'd do it. And, they do the same thing on the closing end of the loan."

Watson Group Financial, which opened for business more than 25 years ago, had a long list of satisfied customers, some of whom came back to the company when they needed a second, third or fourth mortgage, according to Poulos.

That impressed him because delivering quality service is what consumers demand and remember. What's more, taking mortgages over the phone does not work as well as a face-to-face sit-down with members.

"In today's world, mortgages are not anywhere near as simple as they used to be. Members like to sit down with somebody and ask lots of questions, and you build that relationship differently than you would over the phone," Poulos said. "That provides a benefit for us in that it helps us build a personal relationship with members."

Poulos said he expects many consumers who apply for a mortgage through the CUSO may do their banking with other institutions.

"If we give them such a great experience on the mortgage servicing side, then there is a really good chance they will consider us for banking services," he noted.

Michigan First officially acquired Watson Group Financial in January 2014 for under $10 million, according to the credit union. In addition, the search process costs totaled $50,000 and the technology upgrades needed at the newly-acquired company amounted to $100,000, Poulos said.

Since the acquisition of the Watson Group Financial, now named Michigan First Mortgage, the CUSO has hired five more people and has 30 employees who work in three offices in in the Michigan cities of Waterford, Lansing and Brighton.

Michigan First Mortgage plans to open a fourth office in Grand Rapids soon after Jan. 1, 2015 when the $38.9 million, 5,183-member Grand Rapids Family Credit Union will consolidate with Michigan First. The consolidation also will push the cooperative's number of members well over the 100,000 mark.

Michigan First also is opening a mortgage servicing division that will play a key role in delivering the credit union's stellar service to retain and expand member relationships.

"When you do things the way people want them done, you get more market share," Poulos said.

That dogged dedication to member service may have been one the keys that has enabled the credit union to grow over the years.

Established in 1926 as the Detroit Teachers Credit Union, Michigan First became the largest teacher's cooperative in the world by 1952 and during the 1960s, it held that title until the $62 million Navy Federal Credit Union in Vienna, Va., took over the top spot. The cooperative changed its name to Michigan First Credit Union in 2001.

As the only Michigan credit union that serves members across the state, the nation and around the world, Michigan First also operates a live call center 24/7.

Poulos said he expects the acquisition of Watson Financial Group will allow the credit union to grow its assets to $1 billion in about two years. By 2016, the Michigan First Mortgage CUSO plans to offer mortgage loan originating and servicing.

"We have actually had some inquiries as to whether we want to do that at some point in time," he said. "But, we have to build up more of our infrastructure before we are able to do that."

Poulos is confident the mortgage CUSO will be able to attract credit union clients because of its focus on doing things the way members want.

"With Quicken Loans or others, you have to do the mortgage application over the phone because that is the only way they do it," he observed. "We say that if you want to do the mortgage loan over the phone, we'll be glad to do it over the phone or if you want to do it via email, we'll be happy to that as well.

"But if you would really like to meet with us, just tell us where and when," Poulos added. "That puts all of the control of the origination experience and the service experience in the hands of the member."