ALEXANDRIA, Va. – NCUA has announced the ninth round of proposed regulatory changes associated with NCUA’s Deregulation Project.
In its newest proposal, NCUA said it is requesting comments on one proposal that would eliminate unduly burdensome requirements in the Code of Federal Regulations related to chartering and field of membership eligibility.
The Proposal: Chartering and Field of Membership – 12 CFR 701, Appendix B
The Proposed Change: According to NCUA, the proposed rule would remove the automatic disqualification of associational groups that require the purchase of a product or service as a condition of membership. Instead, eligibility will not be automatically denied solely for this reason and more holistic evaluation would be allowed, NCUA said.
Effect on Credit Unions: “The proposed amendments would 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,” NCUA said.
