WASHINGTON (1/13/16)--The National Credit Union Administration’s field-of-membership proposal is a “much needed update” to the agency’s regulations, Rep. Ted Lieu (D-Calif.) wrote Tuesday. With his letter, Lieu became the third member of the U.S. Congress to express strong support for the proposal.
“Thank you for developing a thoughtful proposal to allow credit unions to continue to meet the needs of consumers and small businesses,” Lieu wrote. “Whether serving the large manufactures, the local businesses, or the general consumer in California's 33rd Congressional District, the NCUA is taking positive and progressive steps with this proposed rule.”
The NCUA proposed the rule at its November board meeting, with the intent to provide greater choice for consumers while adding flexibility for credit unions to better serve their communities.
Lieu praised the proposal for aligning federal charters with “regularly modernized charters,” and singled out two specific provisions for praise.
“I am pleased to see two updates included in the areas of: 1) enhancements to the Trade Industry or Profession (TIP) charter, and 2) expansion of membership eligibility to include the boundaries of congressional districts,” he wrote. “Both of these will increase consumer participation in federally chartered credit unions and create competition that will benefit consumers in the financial services marketplace.”
The Credit Union National Association is urging credit union stakeholders to continue to weigh in with support for the proposal up until the Feb. 8 comment deadline.