Division of Banks Joins Multi-State Coalition of Regulators, Inviting U.S. Secretary of Education Cardona to Join Them in Protecting Student Loan Borrowers, Urging the Reversal of Policies that Undermine States’ Oversight of Student Loan Servicers
March 9, 2021 — The Massachusetts Division of Banks joined a multi-state coalition of state financial regulators congratulating Secretary Miguel Cardona on his confirmation and inviting him to partner with states in protecting student loan borrowers across the country. The letter calls to the Secretary’s attention two existing U.S. Department of Education policies that obstruct states’ ability to regulate the private companies that service federal student loans. The state regulators urge Secretary Cardona to reverse these policies and join states’ efforts to ensure the student loan servicing industry is a resource for borrowers, not a barrier to relief or source of harm. The legacy policies have created unnecessary obstacles to states implementing common-sense consumer protections and investigating potential misconduct:
DOE issued guidance asserting that federal law preempts states’ regulation of the private companies that service federal student loan, including licensing requirements and other consumer protections.
DOE attempts to use the federal Privacy Act of 1974 as a shield against states’ requests for information, claiming that federal law prohibited student loan servicers from sharing certain information with states.
Jan. 21, 2021 — Massachusetts Governor Charlie Baker signed S2828, An Act Modernizing Credit Union Laws, into law on January 12th, making it possible for Massachusetts credit unions to help further improve the lives of their members. The bill has long been a priority for Massachusetts credit unions and is the most important and comprehensive enhancement to the MA credit union state charter in over 30 years.
Throughout the legislative process the importance of credit unions to the Commonwealth in providing vital services to their communities was emphasized. The new law will allow credit unions to adapt to a financial landscape that has shifted dramatically over the last three decades through a more logical and organized system that will better serve the residents of Massachusetts.
The majority of provisions within the bill modernize existing credit union authorities, and address such areas as governance, credit union member authority, transactions, deposits and loans, and technology enhancements. The new law strengthens credit unions’ ability to enhance the financial stability of their members through streamlined personal loan authority, eliminating the 100-mile radius for real estate loans and increasing partner options for participation loans. It also modernizes a number of governance requirements for credit unions, including their annual meeting processes, electronic member voting, authorizes associate director positions, and streamlines committee composition.
1st credit union to take advantage of new interstate branching law
Feb. 5, 2016 — Lowell, Mass. — Jeanne D’Arc Credit Union said it will open its 10th branch office later this year in Nashua, becoming the first state-chartered credit union to take advantage of a new law allowing for expansion outside Massachusetts (Lowell Sun).
Final amendments for Mass branching law filed
Aug. 4, 2015 – Boston, Mass. – The Division of Banks has filed final amendments to implement new legislation relative to credit union branching.
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