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Texas Credit Union Commission Adopts MBL rule
Monday, November 7, 2016 6:55 AM

The Texas Credit Union Commission held its final meeting of 2016 on Friday, Nov. 4.  The commission adopted the amendments to 7 TAC Section 91.709 concerning Member Business Loan. The amendments are necessary to keep Texas state-chartered credit unions competitive with federally chartered credit unions when NCUA’s new MBL rule goes into effect in January of 2017.

NCUA is reviewing the TCUD MBL rule and will have to sign off to avoid state charters being subject to the NCUA rule.

The Commission also approved the adoption of the amendments to 7 TAC, Part 8, Chapter 153, related to consumer disclosures, the types of lenders authorized to make equity loans and technical corrections, specifically sections 153.5 (Three Percent Fee Limitation), 153.8 Security of Equity Loan), 153.13 (Preclosing Disclosure), 153.14 (One Year Prohibition), and 153.17 (Authorized Lenders).

The Department staff reported that state credit unions are performing well and continue to reflect improvement as the Texas economy improves. Assets as of June 30, 2016, are close to $2 billion greater compared to the numbers at the end of June 2015. Credit unions reporting year-to-date operating losses have dropped from 40 in 2015 to 35 in 2016. Aggregate year-to-date losses are around $2 million, while net income is close to $120 million.

The conversion of Alliance CU of Lubbock to a state charter brings the number of state-chartered credit unions to 185. 

The Department’s Equal Employment and Workforce Diversity Plan was re-adopted without change after a required rule review.

Commissioner Feeney updated the Commission on the status of the audit being conducted by the State Auditor’s Office. The final report has not been finalized but is expected later in November. Each Commission member will receive a copy of the audit when it is public.

The next meeting of the Commission will be held on March 10, 2017, at 9 a.m.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or