Association urges support for modernization of service facility requirements

NYCUA with tagline

In a letter to the NCUA on Wednesday, William J. Mellin, New York Credit Union Association president/CEO, expressed the Association’s support for the agency’s proposal to amend its Chartering and Field of Membership manual to modernize service facility requirements for federally chartered multiple common-bond credit unions.

Mellin said that the proposal would allow MCBs that participate in shared branching networks to use network branches to satisfy service facility requirements — a move the Association strongly supports.

Further, participating credit unions could also use this flexibility to provide services to underserved communities, he said. In addition to supporting these proposed amendments, the letter also urged NCUA to authorize the use of internet services to satisfy branch location requirements.

“Shared branching is a primary example of how the credit union cooperative spirit benefits consumers,” Mellin said. “By pooling resources, credit unions provide a wide variety of conveniently located services for their membership.”

The proposed rule was approved at the NCUA Board’s December 2020 meeting. The letter to the NCUA is posted on the Association’s website.

Leave a Reply