Over time, markets change and customers’ needs evolve. But, if a federal savings association wants to adjust its strategy to increase commercial lending or some types of consumer credit, it’s stuck – unless it changes charters. That’s expensive and should be unnecessary. The charter should accommodate change.
Curry’s remarks followed the introduction of two bipartisan bills earlier this week in the House and Senate that would provide a simple process for thrifts to elect to receive the lending powers – and compliance responsibilities – of national banks without changing their Home Owners Loan Act Charters. As a former commissioner of banking in Massachusetts, Curry championed a similar approach to charter flexibility for state-chartered thrift institutions, and added that “it makes sense for the federal thrift charter too.”
ABA applauded the introductions of the bills. ABA EVP Bob Davis said:
ABA has long championed greater flexibility for HOLA-chartered institutions to adapt their business models to changing demographics and changing needs in their communities. Federal saving associations have a long, proud history of being responsive to their communities’ needs, and this legislation will help them to enhance and continue that record.
Read Curry's remarks.