Alabama Credit Union Administration Board Report
September 10, 2018
On September 5, the Alabama REALTORS® Public Policy team attended the State of Alabama Credit Union Administration (ACUA) board meeting in Montgomery to monitor for impacts on the real estate industry and property owners. The ACUA is responsible for protecting public interest by ensuring that all Alabama state credit unions provide professional and competent financial services to the citizens of Alabama regardless of means.
In the meeting, ACUA members discussed proposed statutory and regulatory changes ahead of the 2019 Legislative Session. Many of these proposed changes are technical revisions and would make the ACUA statute consistent with the National Credit Union Administration (NCUA) statute. One proposed change would amend loan policies for real estate transactions. ACUA’s regulatory rules currently require an appraisal if a loan for a real estate transaction is greater than $150,000. The proposed change to the regulatory rule would raise the threshold to greater than $250,000 for appraisals in loans for real estate transactions, making it consistent with NCUA’s regulations.
It was also reported that a new credit union will be opening soon for underserved communities. Credit unions are growing around the state at an annual rate of five percent with $15.6 billion in assets. Earnings are currently up, and delinquencies are down.
Alabama Credit Union Administration Background
Established in May of 1985 by Legislative Act 85-457, the Alabama Credit Union Administration is an independent state agency devoted exclusively to chartering, regulating and supervising Alabama state-chartered credit unions. The Alabama Credit Union Administration was accredited by the National Association of State Credit Union Supervisors (NASCUS) in 1998. Accreditation standards are reviewed every five years. In February 2014, the agency was reaccredited by NASCUS for five years.