Tuesday, July 5, 2016

Underserved Area Bill Adds Reporting Requirement

H.R. 5541 (Financial Services for the Underserved Act of 2016) adds a new reporting requirement for a federal credit union that adds an underserved area.

Currently, only federal credit unions with a multiple common bond charter are permitted to add underserved areas to their fields of membership. However, these multiple common bond credit unions are not required to report information regarding how they are serving those underserved areas.

H.R. 5541 will permit all federal credit unions to add underserved areas to their fields of membership; but requires them to report information on the underserved areas added.

Specifically, a federal credit union that receives an underserved area approval from the National Credit Union Administration (NCUA) will be required to report annually on the number of members who are members due to the underserved area application and the number of offices or facilities maintained by the credit union in the underserved area.

The bill would also require NCUA to publish this information annually.

Read the bill.

No comments:

Post a Comment