Metsger on Moving Home-Based Credit Unions: Video CUTs
ALEXANDRIA, Va. — NCUA Board Member Rick Metsger answered questions from the Credit Union Times after the NCUA’s monthly board meeting about the final rule on charitable donation accounts, the proposed rule for home-based credit unions and safety measures for the NCUA’s examiners.
NCUA Chairman Debbie Matz and Metsger voted in favor of a proposed rule that would prohibit credit unions from operating in homes.
“The delayed effective date for the requirement for FCUs to have an office location is designed to allow affected FCUs time to adapt to this change. The more immediate requirement to meet in public places improves working conditions for NCUA staff in the short term without immediately imposing a new requirement on small FCUs,” said the board memo, released on Thursday.
Board Member Michael Fryzel, who voted against the proposed rule, said the NCUA lacks the authority to implement the measure. If the proposed rule is eventually finalized, Fryzel said it could cause small home-based credit unions to merge or liquidate.
“No, I don’t agree with that,” Metsger told Credit Union Times, referring to Fryzel’s position on the rule.
“As I have examined the credit unions that we are talking about, a lot of them are not making loans. I mean, they have essentially just become saving institutions. They have a right to do that but in terms of whether it’s going to have a negative impact on the credit union one way or another, I don’t believe that,” said Metsger.
Watch the full interview with Metsger above.