ARLINGTON, Va. -- In light of tomorrow's scheduled briefing for House Financial Services Committee staff on conversions to mutual savings banks, NAFCU sent a letter to all committee members offering its take.

"NAFCU has studied this issue closely and believes that choice, transparency and full disclosure are paramount in any credit union conversion to a mutual charter." President/CEO Fred Becker wrote.

He pointed to NAFCU's white paper on the subject, highlighting its key positions, including that a membership meeting should be required prior to balloting to announce the intention to convert. The white paper also stated that the directors and senior management should not be able to benefit financially from the transaction for at least 10 years and a minimum of 20% of the membership voting should be required in order for the measure to be approved.

The Credit Union Regulatory Improvements Act (H.R. 1537) includes the membership meeting as well as a 30% minimum voter participation requirement.

"NAFCU strongly believes that following these recommendations will ensure that conversions take place in a fair manner and would in turn serve the members' needs in the most appropriate way," Becker concluded.