Reg Amendments on Foreign CUs, Debt Cancellation Products on Tap for Texas CU Commission Meeting

AUSTIN, Texas – The nine-member Texas Credit Union Commission will take up and consider the adoption at a special meeting May 19 two proposed amendments to the state’s credit union rules and regulations concerning foreign credit unions and debt cancellation product parity with federal credit unions Commissioner Harold Feeney said the current credit union rules limit foreign credit unions to having occupational or associational groups “located conveniently” to the CU’s office in the state. The state defines foreign credit unions as any credit union domiciled outside of Texas or in another country. The amendment would allow foreign CUs to expand geographically as well. The proposed amendment concerning debt cancellation products would prohibit Texas credit unions offering these products from being self-insured and require them to be insured by a third-party. Last year, the NCUA said federal credit unions offering debt cancellation products can be self-insured. But Feeney said, “self-insurance is too risky.” There are two additional proposed amendments out for comment until May 12 concerning trust and lending powers. Feeney said the commission plans to take those up at its regular meeting in July.