ALEXANDRIA, Va.– National Credit Union Administration Chairman Rodney E. Hood said the agency plans to take a “phased approach” to implementing its new FOM rules in the wake of a recent court decision.
As CUToday.info reported earlier, in August the D.C. Circuit Court of Appeals ruled in mostly in favor of NCUA in a case brought by the American Bankers Association that had challenged expanded rules around field of membership.
“In response to the D.C. Circuit’s ruling, which largely upholds the NCUA’s field-of-membership rules, the NCUA will take a phased approach to implementing this decision,” Hood said. “Such a phased approach is necessary because the D.C. Circuit’s ruling remains subject to requests for further review.”
The chairman continued, “With respect to credit unions serving rural districts, the NCUA Board will permit federal credit unions to submit applications seeking expanded rural districts serving geographic regions that encompass up to one million people and that meet the other requirements set forth in the agency’s field-of-membership rules. The NCUA will act on such applications at the appropriate time.”
Hood noted the D.C. Circuit upheld the portion of NCUA’s 2016 rule that allowed charters serving Combined Statistical Areas or a portion thereof, subject to a 2.5-million person limit. He said the agency will announce further guidance on this issue shortly.
“In the near future, the NCUA Board will consider a limited proposal that will address another issue raised by the D.C. Circuit regarding the definition of local community that includes portions of Core-Based Statistical Areas that do not include the urban core,” Hood said. “The format of this proposal will be a notice of proposed rulemaking with public comment.”