Michigan Credit Union Act Update Introduced
A package of six bills designed to update the Michigan Credit Union Act (MCUA) in a variety of ways was introduced in the Michigan Legislature this week.
The bills (HB 5017-5022) were introduced in the House and a committee hearing has been scheduled for 10:30 a.m. on Wednesday, Oct. 28. MCUL’s government affairs team is mobilizing targeted credit union volunteers and professionals to contact legislators on the House Financial Services Committee.
“We’re making real progress in our efforts to bring the Michigan Credit Union Act into the 21st century,” said MCUL & Affiliates President and CEO David Adams. “It’s crucial that we work with lawmakers to get this legislation passed so that credit unions across Michigan can serve their members with a full array of product offerings without unnecessary regulatory burdens."
The act has not been updated in more than a dozen years, and MCUL is pushing for a number of provisions that would provide regulatory relief for credit unions, technical fixes, credit union protections and more.
The following are some of the measures included in the bill:
- Regulatory relief, including eliminating unnecessary barriers, updating requirements for board meetings, modernizing IT vendor contracting requirements, eliminating limitations on loan prepayment penalties and more
- Improving the examination process for credit unions, including ensuring that exam reports are kept confidential, the exam process is transparent and that credit unions aren't penalized for declining to follow "best practices" not required by law or safety and soundness.
- Expanded powers for credit unions, including allowing Michigan-based CUSOs to provide trust services, confirming CUs’ ability to offer educational scholarships and providing financial counseling in underserved areas.
As the league continues to work with legislators, MCUL is asking credit unions throughout Michigan for their help as well. Lawmakers regularly say that credit union testimonials go a long way toward influencing their legislative decisions, and the league is encouraging CUs statewide to speak with House and Senate members about the positive impacts an MCUA update will have on their members.Go to main navigation