BOSTON (4/11/08)--The Massachusetts Division of Banks has proposed amendments to regulations that will give state-chartered credit unions some parity with federal charters. State regulation 209 CMR 50 was originally passed in 1998, went into effect in 1999 and is amended every few years, Joe Leonard, general counsel for the Massachusetts Division of Banks, told News Now
. This is the fifth set of amendments, Leonard added. The amendments occasionally are proposed because state credit unions did not get all the capabilities the federal credit unions received when chartered in the state. “So we’re trying to take a well-reasoned and moderate approach for fairness’ sake,” Leonard explained. “Sometimes we get petitioned to make changes by the state of Massachusetts Credit Union League.” New authorities granted by the proposed amendments would include:
* Authorizing credit union service organizations (CUSOs) to engage in securities brokerage; * Increasing unsecured and secured personal loans from a maximum term of 12 years to a maximum term of 15 years; * Authorizing indirect mobile home loans; * Authorizing credit unions to enter into consumer loan participations and non-residential real estate loan participations with CUSOs; and * Authorizing additional money transfer services for nonmembers.
A public hearing will be held Monday at 10:30 a.m. EDT on the parity proposals. The public comment period will end Tuesday at 5 p.m. The proposed amendments must be sent to the state legislature for 90 days of review. So the amendments likely will not go into effect until August, Leonard said.