WASHINGTON–Saying it is expressing “strong opposition,” the Independent Community Bankers of America has filed a comment letter with NCUA over its proposed FOM rules for federally chartered credit unions. It said the proposal in some cases makes for a “mockery.”
“NCUA’s most recent FOM proposal to raise the population limits for most community credit unions to 10 million violates the intent and the plain language of the Federal Credit Union Act,” ICBA Executive Vice President and Senior Regulatory Counsel Christopher Cole wrote in the comment letter. “Together with the final FOM rule that was approved last October, these changes would further erode any meaningful distinction between tax-exempt credit unions and taxpaying community banks, thereby further undermining any justification for credit unions to remain tax-exempt.”
The ICBA said that if NCUA’s proposal is adopted, federal credit unions would be able to serve a statistical area with a population that is greater than the population of 41 states and the District of Columbia—“making a mockery of statutory membership restrictions.” Further, the NCUA’s proposal to allow community charter applicants to submit narratives to demonstrate residents’ common interests is troubling because the agency has proven that it cannot be objective when it comes to credit union expansion, ICBA wrote.
The ICBA has joined with the American Bankers Association in filing two lawsuits against NCUA over its rules on FOM and member business lending, respectively. Each association is planning to submit a friend-of-the-court brief in support of the other’s lawsuit.
“Enough is enough,” ICBA President and CEO Camden Fine said in a statement. “No longer should the NCUA be allowed to stretch the law beyond its breaking point to serve as the tax-exempt credit union industry’s regulatory rubber stamp.”
A full copy of the ICBA comment letter can be found in CUToday.info’s The gov.