WASHINGTON—NCUA has appealed the U.S. District Court for the District of Columbia's decision on the agency's field-of-membership (FOM) rule.
As CUToday.info reported, the court's March ruling upheld two challenged portions of the rule and struck down two provisions in a lawsuit filed against the agency by the American Bankers Association (ABA).
The credit union trade groups have both expressed support for NCUA’s final rule.
During the CUNA Finance Council’s recent meeting in Austin, Texas, Tracy Bombarger, association regional director-operations in the agency’s Region IV office, said approximately 40 credit unions had been directly affected by the recent court ruling, and that the agency has been in touch with each of them
The court ruled the provisions that exceeded the NCUA's statutory authority include those that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and the increase to 1 million people the population limit for rural districts.
The court ruled in favor of the NCUA's rule on all other provisions.
The ABA has until May 29 to cross-appeal.
The NCUA's FOM rule took effect in February 2017.
NAFCU, CUNA and CUNA Mutual Group filed an amicus brief supporting NCUA's FOM rule last June. The association believes the NCUA's FOM rule is well within the agency's legal authority and is in keeping with the Federal Credit Union Act.
In December 2016, the ABA filed suit against the NCUA over this rule.