WASHINGTON (12/23/15)--The National Credit Union Administration’s field-of-membership (FOM) proposal will ensure credit unions can meet the needs of consumers and small businesses, Rep. Brad Sherman (D-Calif.) wrote to the agency Tuesday.
In his letter, Sherman also advocated that the NCUA look to modernize additional regulations, including supplemental capital.
“In recent years, many states, especially California, have aggressively expanded the FOM opportunities for state charters,” Sherman wrote. “Ensuring federally chartered credit unions remain a viable option to consumers and with a competitive charter is another way the NCUA is properly serving the needs of American consumers.”
Sherman added that the intent of the rule has garnered broad support from lawmakers.
“Allowing for new segments of the population to experience the benefit of the credit union charter is a concept supported by many in Congress,” he wrote. “This rule assists credit unions in achieving this goal while working within the framework provided to the NCUA under the Federal Credit Union Act.”
Sherman is the second legislator to write in support of the proposal. Rep. John Garamendi (D-Calif.) wrote last week that the proposal is an “important modernization” of the NCUA’s regulations.
CUNA has issued an action alert to engage the credit union movement to weigh in with its support of the proposed rule. Comments will be accepted through Feb. 8.