CUNA President/CEO Jim Nussle provided CUNA members with an update on the lawsuit against NCUA’s field of membership (FOM) rule. On March 29, the U.S. District Court for the District of Columbia upheld two challenged portions of the rule and struck down two provisions in a lawsuit filed by the American Bankers Association.
“CUNA supports the use of all available tools to help credit unions serve their members,” Nussle wrote. “NCUA filed a notice with the court last week setting forth its plan to comply with the ruling… the NCUA's notice observes that some of the court's ruling could be overturned in an appeal." CUNA strongly supports NCUA's authority to issue the rule, and the important modernizations the final rule sought to help credit unions serve members.
“We also support NCUA efforts to pursue any available avenue, be it judicial, regulatory, or legislative, to ensure consumers have the access to credit union membership within their community,” Nussle added.
NCUA will not grant new community charters based on the expanded definition of "rural district" and "combined statistical area" going forward, but credit unions will not be required to de-list members that joined prior to April 4.
CUNA will continue its engagement with NCUA going forward, and with credit unions that may be affected by the ruling.