The credit union-owned MEMBERS Trust Co. said it will continue to watch how a proposed plan to create a Consumer Financial Protection Agency will impact its trust services.
In 2003, MEMBERS Trust converted to a federal thrift and was chartered by the Office of Thrift Supervision, enabling it to offer trust services to members of credit unions nationwide. While the OTS could potentially fold into the new, national bank supervisor proposed last week by President Obama, MEMBERS Trust does not foresee any immediate impact.
"MEMBERS does not anticipate substantive changes to existing processes down the road with a new regulator and will continue to remain up-to-date on any developments as they occur," said Neil Archibald, general counsel at the Tampa, Fla.-based trust company.
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Archibald said interstate branching, considered to be a core feature of the thrift charter, may fall under the proposed national bank supervisor charter. That would allow MEMBERS Trust to continue to operate nationwide.
The proposed Consumer Financial Protection Agency's coverage would include mortgages. In this instance, MEMBERS Trust's reverse 3 mortgage division will likely now be under the purview of this new agency with a focus on consumer disclosure such as streamlined revisions to the APR calculations and the timing of disclosures, Archibald said.
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