The NCUA plan proposes to increases to 10 million the current 2.5 million population limit that applies to a community consisting of a Core Based Statistical Area (CBSA) or Combined Statistical Area (CSA) subject to a credit union’s ability and commitment to adequately serve the area.
In its Federal Register document, the NCUA explains that the higher cap better anticipates and accommodates “inevitable growth” to the extent permissible by law.
The amendments also would allow a return to submitting a narrative to establish common interests or interaction among residents of the area a credit union proposes to serve, thus qualifying it as a well-defined local community, rather than relying on a “presumptive community.”
CUNA suggested both of these changes to the agency in a letter to the NCUA board before the original FOM proposal and in its comment letter on the original FOM proposal. The proposal also asks questions about possible alternatives to FOM issues.
Finally, it also corrects an error in the final rule that inadvertently restricted fields of membership inside CSBAs to not more than 2.5 million people in a metropolitan division, rather than in the CSBA.