Saturday, August 12, 2017

United Texas CU Abandons Federal Charter and Becomes Privately Insured

United Texas Credit Union (San Antonio, TX) has switched from a federal to state charter and converted from federal to private share insurance.

The $254 million credit union will now be insured by American Share Insurance.

The credit union's CEO stated that one of the main reasons for the charter conversion is Texas' flexible Field of Membership (FOM) rules.

Also, local supervision and lower regulatory fees played a role in the credit union's decision to change charters and insurers.

Read the press release.

2 comments:

  1. Lower regulator operating fees is a BIGLY benefit to the credit union membership. Escaping Duke Street is HUGELY important to credit union survival. NCUA is an irrelevant government agency and regulator.

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    Replies
    1. NCUA is very relevant until they're gone.
      Until then, they're relevant in an extremely negative way.
      Enables over concentration of medallion taxi loans.
      Obstructs mergers and conversions.
      Enabled the corporate crisis.
      Conflicted by the dual mission of insurance fund and supervisor.
      Acts as a trade association versus regulator.
      We thought McW would make a difference.
      Guess not.
      Until Congress does its job, NCUA very relevant.
      In for a long wait, congress isn't doing anything.

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