SEG expansions mirror last year's rate

WASHINGTON - SEG expansion isn't growing or shrinking-it's the same. It's almost uncanny how consistent the rate of SEG expansion has been since the passage of The Credit Union Membership Access Act. SEG expansion for the first four months of this year is about the exact same rate as the first four months of last year. "It's weird how identical it is," said CUNA economist Bill Hampel. So far this year about 500,000 new potential credit union members were created via SEG expansions, mirroring last year's figure at this time. That puts this year's expansion on pace to reach 1.5 million potential new members, which it ended up being last year. However, Hampel said with NCUA starting to talk about streamlining the FOM approval process, SEG expansion may pick up in the second half of the year. "If I were to guess, the rate is going to pick up after the summer if NCUA streamlines the application process," said Hampel. NCUA Region V Director Len Skiles recently told the Texas CU League that his FOM task force is considering a number of FOM streamlining changes. (see related story, page 16) They include using "EZ" applications that would require FCUs to do less paperwork when applying to add groups up to 500 members. Right now the EZ form is only for groups of up to 200 members. Also, when existing sponsers engage in mergers or other restructuring, they would automatically be added as SEGs, and would not have to apply as new groups. -pgentile@cutimes.com