Below is a list of current state issues.
DIFS Model Bylaw Review
(Support) An outcome of our MCUA dialog with DIFS, this review would modernize the state's bylaws, providing clarity for credit unions who look to the bylaws for guidance. Amendments seek to provide clarity and consistency with the MCUA. Additionally, MCUL will seek to provide clarification on the voting process. Through this effort, MCUL, along with DIFS, will work to create a procedural toolkit for credit unions to assist with FOM expansion, mergers and charter conversions as a resource to Michigan’s state-chartered credit unions.
IRS 990 Resolution
Earlier this year, all Michigan state-chartered credit unions received multiple notices from the IRS indicating the group tax-exempt status had been revoked. After efforts by DIFS and through work with Senator Stabenow’s office a resolution by the IRS, acknowledging an error by the IRS, was provided. DIFS and MCUL will continue to provide updates to the industry. Read the article on this resolution, which corrects an IRS error that affected some credit unions' tax status. View a copy of the letter from the IRS here.
MCUL Examination Survey
Twice a year, in an effort to improve the examination experience and pre- and post-exam communication between credit unions and the state and federal regulators, MCUL seeks your input on your overall examination experience. You can take the survey here.
DIFS also has their own examination survey they encourage credit unions to complete. Providing feedback to the examination staff not only assists the examiners but credit unions and builds stronger relationships between credit unions and the regulators.
GSE Investment Authority — DIFS Order
After nearly five months of work by Chuck Holzman, Dow Chemical Employees CU and assistance from MCUL, DIFS Director Pat McPharlin issued Order No. 18-063-CU granting Michigan’s state-chartered credit unions the authority to invest, without limitation, in Fannie Mae, Freddie Mac, FHLB and FCS. The order highlights the following:
- Domestic credit unions may invest, without limitation, in the obligations of Fannie Mae, Freddie Mac, FHLB and entities in the FCS in a safe and sound manner.
- Domestic credit unions do not currently have authority under state or federal law or regulations to invest, without limitation, in the obligations of Fannie Mae, Freddie Mac, FHLB and entities in the FCS.
- Competing providers of financial services already have authority to invest, without limitation, in obligations of Fannie Mae, Freddie Mac, FHLB and entities in the FCS, thereby placing domestic credit unions at a competitive disadvantage if they do not have the same authority.
- Granting this additional authority is appropriate and necessary to enable domestic credit unions at a competitive disadvantage if they do not have the same authority.