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Texas Credit Union Commission Adopts Revised FOM Rule
Monday, July 11, 2016 7:00 AM

The Texas Credit Union Commission Rules Committee met on Thursday, July 7, and voted on recommendations to the Commission updating the field of membership rule and re-adoption of several existing rules without change.

Commissioner Feeney announced during discussion of the proposed rule on member business loans that, shortly before the meeting began, he learned that the NCUA found some aspects of the proposed MBL rule too general. Therefore, the Committee tabled consideration on the matter. Greater detail was added to the amendment and the rule now more closely tracks the NCUA rule. At the Friday Commission meeting, the amendment was approved for public comment.

The Rules Committee recommended that the Commission approve the amendment to Field of Membership, expanding the definition of local service area to consist of one or more contiguous political subdivisions that are within reasonable proximity of a credit union’s offices and allowing credit unions to include areas in a credit union development district in their field of membership.

The Committee also recommended that the Commission approve the following, which they did at the Commission meeting on Friday:

  • Adoption of amendments to 7 TAC Section 97.200 concerning the Employee Training Program
  • Re-adoption of 7 TAC Section 91.7000 (Certificates of Indebtedness)
  • Re-adoption of 7 TAC Section 91.8000 (Discovery of Confidential Information)
  • Re-adoption of 7 TAC, Part 8, Chapter 151 (relating to Home Equity Lending Procedures), Chapter 152 (related to Repair, Renovation, and New Construction on Homestead Property) and Chapter 153 (relating to Home Equity Lending).
  • Publication for comment on amendments to 7 TAC, Part 8, Chapter 153 of Home Equity Lending. The proposed amendments include updated legal references, technical amendments, and clarifications as to authorized lenders.
  • Adoption of the FY 2017-2020 Rule Review Plan. 

The Department reported that their 2016 financial performance is positive, with expenditures 7 percent under budget and revenues slightly over budget. The operating environment for credit unions continues to improve, and they are performing well despite the slump of the oil industry and low interest rates.

As of March 31, 2016, there are 184 state-chartered credit unions with assets of close to $36 billion for an annualized growth rate of 6.33 percent. The average net worth ratio is 9.99 percent, down from 10.10 percent from one year ago. Loans increased 10.3 percent and shares increased 5.9 percent over last year. The number of credit unions reporting losses dropped from 40 to 39.

There are 26 credit unions assigned a CAMEL rating of 3 or higher and four have outstanding administrative sanctions. Texans Credit Union of Dallas has been released from conservatorship and is once again under the control of its board of directors.

The Commission approved the Department’s operating plan and budget for 2017. The proposed budget is 7.8 percent over the FY 2016 budget, due to increased staffing, merit increases for existing staff members, and capital improvements. Credit union examiners’ have lower salaries and higher workloads than their bank counterparts. This initiative and merit increases are intended to attract and retain talent and increase efficiency with more experienced personnel. Other expenses are replacement of the HVAC system, carpet, and an electronic document management system.

The Commission adopted a weapons policy, consistent with the policy used by the Office of the Governor, which does not impose any restrictions on the carrying of weapons at Commission meetings beyond those mandated by the Legislature.

The next Rules Committee meeting will be held Nov. 3, and the Commission will meet on Nov. 4, times and location to be announced at a later date.

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