NCUA will take a phased approach to implementing its field of membership (FOM) regulation in the wake of the D.C. Court of Appeals’ decision last month to largely uphold the rule. CUNA strongly supports the rule, and joined with CUNA Mutual Group and the National Association of Federally Insured Credit Unions to file a brief in support of NCUA in American Bankers Association v. NCUA.

NCUA Chairman Rodney Hood issued the following statement regarding the FOM rule.

“In response to the D.C. Circuit’s ruling, which largely upholds the NCUA’s field-of-membership rules, the NCUA will take a phased approach to implementing this decision. Such a phased approach is necessary because the D.C. Circuit’s ruling remains subject to requests for further review.

“With respect to credit unions serving rural districts, the NCUA Board will permit federal credit unions to submit applications seeking expanded rural districts serving geographic regions that encompass up to one million people and that meet the other requirements set forth in the agency’s field-of-membership rules. The NCUA will act on such applications at the appropriate time.

“The D.C. Circuit upheld the portion of NCUA’s 2016 rule, which allowed charters serving Combined Statistical Areas or a portion thereof, subject to a 2.5-million person limit. We will announce further guidance on this issue shortly.

“In the near future, the NCUA Board will consider a limited proposal that will address another issue raised by the D.C. Circuit regarding the definition of local community that includes portions of Core-Based Statistical Areas that do not include the urban core. The format of this proposal will be a notice of proposed rulemaking with public comment,” Hood said.

CUNA has long advocated changes to NCUA’s field of membership rule, arguing Congress gave the agency wide latitude to ensure that credit unions could serve communities and members throughout the country.

“We welcome Chairman Hood’s approach to implementing the court’s decision and addressing the outstanding legal issue,” said Ryan Donovan, CUNA chief advocacy officer.