LANSING, Mich. (11/2/15)--The Michigan Credit Union League (MCUL) presented the state Legislature with a first look at proposed changes to the Michigan Credit Union Act (MCUA) during a House Financial Services Committee hearing last week.
Testifying before the committee were: Ken Ross, MCUL executive vice president/chief operating officer; Dennis Hanson, president/CEO, Dow Chemical Employees CU, Midland; Drema Isaac, president/CEO, Central Macomb Community CU, Clinton Township; and Jeremiah Kossen, senior vice president/chief risk officer, Lake Michigan CU, Grand Rapids.
“Building on our work over the last year, credit union leaders made a strong case about how this legislation will positively impact our industry,” said Dave Adams, MCUL CEO. “I can’t think of a better way we can show them the real impact an MCUA update will have.”
The league is urging legislators to modernize the statute, which was last updated in 2003. The package of legislation includes regulatory relief, technical fixes and credit union protections, the league said.
Hanson spoke on the burden of outdated information technology requirements that raise costs and hinder member services.
Isaac urged lawmakers to make changes to the MCUA so that credit unions can’t be penalized for exercising business judgment when considering “best practices” suggested to credit unions during examinations that are not required by law or safety and soundness.
Lake Michigan’s Kossen noted that a MCUA update will not only improve the climate for credit unions in the state, but also provide parity with federally chartered credit unions.
Ross testified about the need to create the Credit Union Regulatory Fund in order to protect industry regulatory fees.
“As an industry, credit unions pay over $7 million into DIFS annual budget, second only to insurance,” he said. “Protecting these fees is critical so that during future state budget crunches, credit union fees aren’t targeted to shore up budget shortfalls.”