AUSTIN, Texas–While nearly all eyes have been focused on NCUA and its new rule for what qualifies as a “service facility” for purposes of serving underserved communities, a new rule has also been approved for Texas’ state-chartered CUs.
The Texas Credit Union Commission has voted in favor of adopting the proposed changes to the Field of Membership rule, 7 TAC 91.301, which removes the definition of “local service area” and related physical office requirement to now allow the commissioner to consider the ability of an institution to provide digital delivery channels as a viable option in its ability to serve its desired membership expansion, according to the Cornerstone Credit Union League.
The league reported the Commission received eight comment letters (including one from the Cornerstone League) in favor of adopting the proposal and no letters in opposition.
“In adopting the changes, the Commission feels that the revised rule will continue to protect safety and soundness while also permitting Texas state-chartered credit unions to serve an evolving market and ensure competitiveness with federal credit unions as well as other financial institutions and fintech companies,” the CCUL said.
The final rule is expected to be effective 20 days after publication in the Texas Register.
Other Votes
The CCUL reported the Commission also voted in favor of:
- Adopting proposed changes to the rule on Complaint Notices and Procedures, 7 TAC 91.121. The changes are intended to incorporate SB 707’s (the Sunset Bill) recommended changes including providing for additional data element tracking and annual reporting related to complaints filed.
- Adopting proposed changes to the home equity rules, 7 TAC Part 8, Chapter 153. The changes specify that applications and disclosures can be provided electronically and details the requirements for doing so. The changes also clarify the applicability of the home equity rules to out-of-state financial institutions.