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CUNA backs board modernization bill prior to committee markup

July 26, 2022

CUNA wrote in support of a bill to modernize federal credit union board meeting requirements prior to its markup by the House Financial Services Committee. The Credit Union Board Modernization Act (H.R. 6889) was introduced by Reps. Juan Vargas, D-Calif., and Anthony Gonzalez, R-Ohio.

The bill would allow boards of federally charted credit unions the flexibility to meet at minimum six times a year rather than the required 12 times a year.

“This outdated board meeting requirement can place a burden on credit union staff and their volunteer board members, especially smaller credit unions with few employees and those in rural areas,” the letter reads. “The amount of resources it takes for a credit union to run a monthly board meeting can shift employee time away from the services that a credit union provides to its community.”

CUNA also supports exemptions made in this legislation for credit unions with a low CAMELS composite rating, “to incentivize good governance at credit unions and promote safety and soundness of the overall system,” the letter reads.  

CUNA also wrote in opposition of two bills:

  • The Expanding Access to Credit through Consumer-Permissioned Data Act, which CUNA believes reaches too far in mandating lending standards for credit unions.
  • The Overdraft Protection Act, which CUNA believes would unnecessarily limit credit unions’ ability to assist their members.