WASHINGTON—House Financial Services Committee members Tom Emmer (R-MN) and Ed Perlmutter (D-CO) have introduced a bipartisan bill that seeks to improve existing language in the Federal Credit Union Act related to expulsion of members. The backers of the bill say it would help better credit unions, members, and employees.
The legislation has the support of credit unions.
"NAFCU applauds Representatives Tom Emmer and Ed Perlmutter for introducing bipartisan legislation that will help protect credit unions and their members from abusive, fraudulent, and criminal activity," said NAFCU President and CEO Dan Berger. “Credit unions must have the ability to address those engaging in illegal or threatening behavior at their institutions to ensure they can safely and soundly serve their members and local communities.
"We appreciate both the House and Senate having introduced this NAFCU-sought legislation, and we will continue to advocate for Congress to pass these important reforms," added Berger.
What’s Proposed
As proposed, the Credit Union Governance Modernization Act of 2020 would allow credit unions to adopt an expulsion policy to expel members who engage in abusive or illegal behavior, while allowing for an appeal process that would provide due process for the accused member.
The legislation would also provide parity with several state-chartered credit unions' model or standard bylaws, which often have a "for cause" provision or board-adopted policy for expulsion.
“The NCUA in September finalized a rule that clarified several bylaw provisions but took a strict reading of expulsion under the FCU Act and declined to broaden the definition of nonparticipation,” NAFCU said.
Harper Joins NeighborWorks America Board
Separately, NCUA Chairman Rodney E. Hood announced the appointment of Board Member Todd M. Harper as the agency’s representative on the Board of Directors of NeighborWorks America, one of the nation’s leading affordable housing and community development organizations.
“I congratulate Board Member Harper on his selection to serve on the NeighborWorks America Board of Directors,” Hood said. “NeighborWorks plays a vital role in fostering greater investments and increasing access to affordable housing in our nation’s most underserved communities and their mission today is as important as ever.”
In June, Board Member J. Mark McWatters requested that the NCUA prepare for his transition off the NeighborWorks America Board of Directors because his NCUA Board term expired.
“In serving on the NeighborWorks America Board, I am committed to ensuring that the organization fulfills its goals of building strong, resilient communities by providing people with opportunities to live in safe, healthy and affordable housing,” Board Member Harper said. “My work at NeighborWorks America will also build on my long-standing public policy goals of affordable housing, consumer financial protection, and economic equality and justice. I thank Chairman Hood for the designation, as well as Board Member McWatters for his prior service.”
The NeighborWorks America Board consists of representatives of financial regulatory agencies and the U.S. Department of Housing and Urban Development. Harper joins the following individuals on the NeighborWorks Board:
- Chair Martin Gruenberg, Member of the Board of Directors of the Federal Deposit Insurance Corporation;
- Vice Chair Michelle W. Bowman, Member of the Board of Governors of the Federal Reserve System;
- Grovetta Gardineer, Senior Deputy Comptroller for Bank Supervision Policy, Office of the Comptroller of the Currency; and
- Brian D. Montgomery, Deputy Secretary, U.S. Department of Housing and Urban Development.
For more than 40 years, NeighborWorks America has offered grant funding, peer-exchange, technical assistance, evaluation tools and access to training as the nation’s leading trainer of housing and community development professionals. Its network includes more than 240 members in every state, the District of Columbia and Puerto Rico. In the last five years, the
organization has generated more than $40.2 billion in investment across the country. For more information, visit www.neighborworks.org.