BOSTON – About 100 state chartered credit unions this week received expanded powers to offer additional loans and services under a new law giving them parity with federal charters.
The parity law allows state charters to: increase unsecured and secured personal loans to a maximum of 15 years from 12 years; offer indirect mobile home loans, auto leasing, stored value products, foreign currency exchange and Health Savings Accounts; offer money transfer services to non-members within their fields of membership; and allows their CUSOs to offer securities brokerage services.
It also allows them to buy consumer and commercial real estate loan participations from CUSOs.
In general, the new law allows state charters to engage in any powers allowed by NCUA for federal charters under the agency’s Incidental Powers Act.
