Former NCUA Board Member DavidChatfield told CU Times he does not support the NCUA'sproposed rule that would prohibit credit unions from operating inhomes.

“I was saddened when I read about the proposed rule, since agreat many credit unions began operation in homes of their foundersor officers and many have continued in this way without difficultyfor most or all of their existence,” said Chatfield, who served onthe NCUA board from 1988-1989.

“It just didn't seem right or consistent with credit unionhistory and philosophy to prevent them from continuing in thismanner if their leadership believes it to be in their members'interest to do so,” he added.

After reading the full text of the proposal, Chatfield said hebecame more convinced the NCUA board should not approve therule.

“The 'issues' raised in attempting to justify the rule have beenaround for more than 80 years without requiring such drasticaction. Credit union leaders and NCUA examiners have been able todeal with home office operations and should be able to do so now,”Chatfield said. “Valid issues such as records preservation andprivacy may occur regardless of the office setting and can beresolved.”

Chatfield, a Democrat who was nominated for the NCUA board byformer President Ronald Reagan, told CU Times the proposedrule would result in unnecessary administrative and officeoccupancy expenses for home-based credit unions.

“I also believe it is presumptuous of NCUA to suggest that ithas better judgment about where and how a credit union's membersshould be served than do the officials elected by and from thatcredit union's membership,” Chatfield said. “If I were still amember of the NCUA Board I would not support this proposed rule andwould work to prevent it from being adopted.”