BOSTON (5/10/10)--Massachusetts state-chartered credit unions and credit union service organizations (CUSOs) would receive new powers--perhaps by August at the earliest--under the state’s parity regulation. “This is an ongoing process that goes on every year to review the parity regulation,” Rob Kimmett, senior vice president of marketing and public relations for the Massachusetts Credit Union League, told News Now
. “There were no major changes this year, just series of developments.” New authorities for credit unions would include providing:
* Additional types of employee benefit plans and authority to make investments to fund employee benefit plans that would otherwise be impermissible; * Correspondent services to foreign as well as state- and federally chartered credit unions; and * Payroll services.
New authorities for CUSOs would include:
* Purchasing an insurance agency; * Engaging in credit card loan origination, including the authority to purchase credit unions' credit card portfolios and retain them within the credit union affiliated structure; * Offering payroll processing, employee leasing services and stored value products; * Introducing two amendments to clarify that CUSOs may buy and sell loan participations, such as student, consumer and so-called member business loans that they are currently authorized to originate; and * Offering check cashing and money transfer services to certain nonmembers within the credit unions’ fields of membership.
The legislative approval process must be completed within 90 days, Kimmett said. Then the amendments of the regulation are sent to the Secretary of State for publication. In the best-case scenario, the regulation would be in place by Aug. 20, he added. “By working together, the credit union industry and the banking division can fine tune the regulation--going back and forth--and make it more efficient,” Kimmett said.