WASHINGTON—NCUA’s revised field of membership rules will provide CUs with greater growth flexibility, say CUNA and NAFCU, which are looking closely at additional changes the agency has proposed for its FOM rules.
Thursday the NCUA board, by a 2-0 vote, passed its revised field of membership rules. It also introduced a new proposal raising to ten-million the population cap for well-defined communities and allowing credit unions seeking community charter expansions to present a narrative as to why certain areas would qualify for inclusion.
“We appreciate the work NCUA has done to modernize credit union field of membership,” said CUNA President/CEO Jim Nussle. “As a result of advocacy efforts by CUNA, the leagues and credit unions, the final rule provides more flexibility in the definition of communities. This will facilitate consumer and small business access to credit unions and make it easier for credit unions to serve their members. We commend NCUA for the inclusive and transparent process it undertook and for listening to stakeholder comments aimed at improving the final rule.”
Nussle added that CUNA is closely reviewing the proposed additional FOM changes.
NAFCU applauded the work of the board in making final “the most comprehensive field-of-membership reform initiative that the credit union industry has seen in more than ten years,” said NAFCU President and CEO Dan Berger. “We also thank the board for listening to credit unions’ and NAFCU’s suggestions in its new proposal regarding accepting a narrative approach as to why a particular area meets a credit union’s field of membership and to raise to ten-million the population cap for well-defined communities. We look forward to submitting comments – and to seeing this rule finalized as soon as possible.
“NAFCU is carefully reviewing the final rule and looks forward to working with NCUA as this rule is implemented,” Berger added.
NAFCU noted that the final rule does not include NCUA’s proposal to modify the definition of “service facility” for multiple common bond federal credit unions to include transactional website or mobile platforms.
“The board also did not finalize the proposed rule’s treatment of congressional districts as presumptive communities. Under the proposal, NCUA would have permitted congressional districts to meet the definition of a well-defined, local community,” NAFCU stated.
The new proposed measures are out for a 30-day comment period. The larger, final field-of-membership rule is set to take effect 60 days after publication in the Federal Register.