Removing Barriers Blog

Michigan Credit Union League Continues Effort to Update State Act
Posted February 01, 2016 by CUNA Advocacy

The Michigan Credit Union League is spearheading updates to Michigan’s credit union act. The state’s credit union act has not been updated in more than 12 years and the changes would ease the regulatory burden of Michigan credit unions and provide flexibility for credit unions to better serve members.

Proposed updates to the act, include:

  • Regulatory relief, such as eliminating unnecessary barriers, updating requirements for board meetings, modernizing information technology vendor contracting requirements, and eliminating limitations on loan prepayment penalties;
  • Improvements to the examination process by ensuring that exam reports remain confidential, that the process is transparent, and that credit unions aren’t penalized for not following best practices, which are not required by law for safety and soundness; and
  • Expanded powers for credit unions, such as allowing credit union service organizations in the state to provide trust services and confirming credit unions’ ability to offer educational scholarships and provide financial counseling to underserved areas.