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Board Member Hyland Addresses Key Credit Union Issues at MD & DC Credit Union Association Meeting

Alexandria, VA, February 13, 2007- National Credit Union Administration (NCUA) Board Member Gigi Hyland addressed the  D.C. Chapter of the Maryland and District of Columbia Credit Union Association’s first meeting of the year last week.

During her remarks, Board Member Hyland highlighted the latest trends and issues facing credit unions and then answered questions from the audience. Among the topics discussed were:

• Member Service Assessment Pilot (MSAP) findings;
•  NCUA’s Outreach Task Force;
•  Field of Membership issues;
• Recently passed revisions to the conversion rule; and
• An update regarding Lafayette Federal Credit Union.

“2007 offers a great deal of opportunity for credit unions,” remarked Hyland. “I was very pleased to have the opportunity to discuss with attendees the possibilities for continuing credit unions' service to all segments of their fields of membership."

Regarding the MSAP, Board Member Hyland commended credit unions for “serving those they are chartered to serve within their authorized field of membership, typically working individuals.” Board Member Hyland emphasized the importance of communication between the agency and the credit union community in order to accomplish the mission of the Outreach Task Force, called for by the MSAP. “I welcome all input from credit unions and others which will help the Task Force achieve its objectives. I will be holding a series of town hall meetings which will engage credit unions across the nation to work together with the Task Force.”

Board Member Hyland also discussed the revisions to the conversion rule passed by the NCUA Board during its December meeting and how it impacts credit unions and their members. “From NCUA’s standpoint, the revision is essentially an issue of consumer protection,” stated Hyland. “If you believe in credit unions, you believe members have a right to decide what financial institution is best for them. Full disclosure and information are key elements of that decision making process.”

When asked about Lafayette Federal Credit Union’s recent conversion vote, Board Member Hyland restated NCUA’s legal obligation to the administration and oversight of conversion votes, a role “NCUA takes very seriously.” Board Member Hyland stated that NCUA is conducting an inquiry into the Lafayette vote to determine exactly what errors were made and how those errors can be avoided in future conversion votes, and NCUA also expects Lafayette’s supervisory committee to respond to the series of member complaints about the vote and conversion process.

In closing, Board Member Hyland commended credit unions for their continued commitment to member service and encouraged them to “strive for innovation in order to attract new members and to ensure that credit union products and services truly represent and meet the needs of their members.”

The National Credit Union Administration is the independent federal agency that regulates, charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 85 million account holders in all federal credit unions and the majority of state-chartered credit unions.