Texas Credit Union Commission Votes to Adopt FOM Proposed Changes

On Nov. 5, the Texas Credit Union Commission held its last quarterly meeting of the year. The Commission voted in favor of adopting the proposed changes to the Field of Membership rule, 7 TAC 91.301. The FOM rule removes the definition of “local service area” and related physical office requirement to now allow the commissioner to consider the ability of an institution to provide digital delivery channels as a viable option in its ability to serve its desired membership expansion. 

The Commission received eight comment letters (including one from the Cornerstone League) in favor of adopting the proposal and no letters in opposition. In adopting the changes, the Commission feels that the revised rule will continue to protect safety and soundness while also permitting Texas state-chartered credit unions to serve an evolving market and ensure competitiveness with federal credit unions as well as other financial institutions and fintech companies. The final rule is expected to be effective 20 days after publication in the Texas Register.

The Commission voted in favor of adopting proposed changes to the rule on Complaint Notices and Procedures, 7 TAC 91.121. The changes are intended to incorporate SB 707’s (the Sunset Bill) recommended changes including providing for additional data element tracking and annual reporting related to complaints filed.

The Commission voted in favor of adopting proposed changes to the home equity rules, 7 TAC Part 8, Chapter 153. The changes specify that applications and disclosures can be provided electronically and details the requirements for doing so. The changes also clarify the applicability of the home equity rules to out-of-state financial institutions. 

Additionally, the Commission voted in favor of adopting the rule review of 7 TAC, Part 6, Chapter 93, Subchapter A (Common Terms), Subchapter B (Appeals from Commissioner Decisions, Generally), Subchapter C (Appeals of Preliminary Determinations on Applications), Subchapter D (Appeals of Cease and Desist Orders and Orders of Removal), Subchapter E (Appeals of Orders of Conservation) and Subchapter F (Review and Decision by the Commission), and Re-adoption of Rules.

Questions? Please contact Suzanne Yashewski, regulatory compliance counsel, Cornerstone League at syashewski@cornerstoneleague.coop.