Fryzel Votes Against Home-Based Credit Union Rule

ALEXANDRIA, Va. — NCUA Board Member Michael Fryzel voted against a proposed rule at the body’s monthly meeting on Thursday that would prohibit federal credit unions from operating out of homes. Both Chairman Debbie Matz and Board Member Rick Metsger voted in favor of the rule.

Part of the proposed rule, which would go into effect two years after the final rule’s effective date, would not only prohibit federal credit unions from operating out of homes, it would also prohibit the storage record there, according to the board action memorandum.

“The delayed effective date for the requirement for FCUs to have an office location is designed to allow affected FCUs time to adapt to this change. The more immediate requirement to meet in public places improves working conditions for NCUA staff in the short term without immediately imposing a new requirement on small FCUs,” the memo said.

Fryzel disagreed with that portion of the proposed rule.

“This proposed rule is flawed in many ways and I cannot support it,” Fryzel said at the meeting before casting his first no vote in more than five years.

Also at NCUA on Thursday: 
Corporate CAMEL Rule Amended
Final Charitable Account Rule Approved

William L. Myers, director of the Office of Small Credit Union Initiatives, said some credit unions managers have challenged the NCUA’s right to access home-based credit unions. Fryzel argued that there was not enough evidence to prove that records are not protected.

Fryzel said none of the credit unions the staff contacted indicated they wanted the NCUA’s help.

He also said the NCUA does not have the authority to prevent federal credit unions from operating in homes.

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