Eligibility for credit union membership through an associational group would not be automatically denied solely because members of the group did not purchase a product or service of the institution under a proposal issued Tuesday by the federal regulator.
The National Credit Union Administration (NCUA) issued the proposal in its so-called “ninth round” of deregulation proposals. The agency said the proposal would remove “the automatic disqualification of associational groups” that do not purchase the products or services.
“Instead, eligibility will not be automatically denied solely for this reason and more holistic evaluation would be allowed,” NCUA said in a release.
The effect on credit unions, the agency asserted, would be to “alleviate burden and provide regulatory relief to single associational groups and multiple common bond federal credit unions of all sizes in seeking to include associations that may have some customer-client component.”
The proposed change would be made in the agency’s chartering and field of membership (FOM) manual. In its release, NCUA offered no details on the comment period or deadline for the proposal.
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