WASHINGTON–With the NCUA board having passed amendments its final rule on its FOM Chartering Manual, the question now is when federal credit unions might be able to take advantage of the expanded field of membership options.
As CUToday.info reported, the board said only that FCUs can now begin applying for the expansions, but it didn’t say when it will act. That leaves federal credit unions “up in the air,” noted NAFCU EVP and General Counsel Carrie Hunt. As Hunt noted, the agency indicated only that it will act when the “time is right.”
Complicating action around the FOM rules—which were originally proposed in 2016 before being delayed by a lawsuit filed by the American Bankers Association—is that the litigation is not yet over. While a federal appeals court ruled largely in favor of NCUA, the bankers have filed for a rehearing of the case. NCUA’s response to the rehearing request is due by Nov. 21.
One pleasing aspect of the NCUA board meeting, said Hunt, was she “didn’t necessarily expect such a detailed and robust discussion, but it’s always good to hear the why behind the policymaking on field of membership.”
Vendor Oversight
As CUToday.info also reported here, during that same NCUA board meeting all three members of the board made their case for Congress granting the agency third-party vendor oversight authority, a power other federal regulators have.
That authority is opposed by the credit union trade groups.
NAFCU has formed a task force on the issue with Hunt saying, “If there are additional regulations with no additional benefits it’s incumbent upon NCUA to show how why” any new regulations are needed.
Progress on NDAA?
Credit unions continue to monitor what progress might be taking place in a congressional conference committee hammering out details on the final version of the National Defense Authorization Act (NDAA), which will determine whether banks are granted equal access to military bases as credit unions.
Hunt said there has been discussion around a so-called “skinny” NDAA in which no external issues will be considered. “That could be good for us, but this remains in flux,” she said.
Bank Attack Campaign ‘Shoddy’
As CUToday.info reported here, the Independent Community Bankers of America (ICBA) has launched a nationwide campaign calling on policymakers and the public to “Wake Up” to the “risky practices, costly tax subsidies, and irresponsibly lax oversight of the nation’s credit unions.”
In response, Hunt said NAFCU does not see anything new in it.
“We went through their materials and found some inaccuracies that we have raised with them,” Hunt said. “It looks like a shoddy and thrown-together piece of work. It is designed to keep us occupied and to get a competitive advantage over credit unions. We believe there is room for everyone. Of course, it is frustrating for our members to have to respond.”