Just 2 weeks left to comment on pivotal FOM proposal, CUNA reminds

January 25, 2016

WASHINGTON (1/25/16)--Credit union stakeholders have two weeks from today to submit comment letters on the National Credit Union Administration’s (NCUA) field-of-membership proposal, and the Credit Union National Association (CUNA) is urging all credit unions to comment on the proposal. Comments on the proposal are due Feb. 8.

“There’s still time to get comment letters in, and we’d really like to see a record number of submissions from credit unions supporting this proposal,” said Ryan Donovan, CUNA’s chief advocacy officer. “Letters reflecting official league and credit union positions will give us a strong, united voice of support, which is important not only to show the importance of giving consumers better access to credit unions, but to counter inaccurate bank attacks on this proposal.”

The American Bankers Association and Independent Community Bankers of America wrote to House and Senate leaders last week, claiming the regulation surpasses limitations present in the Federal Credit Union Act.

Donovan said CUNA is working on its response to the bankers’ “factually incorrect” arguments in a letter to congressional leadership.

The NCUA’s proposal is designed to provide greater choice for consumers while adding flexibility for credit unions to better serve their communities.

CUNA has prepared a detailed summary of the proposal, as well as a comment letter guide containing questions and issues credit unions can address in their comment letters.

The proposal contains a number of changes CUNA advocated for, including:

  • Allowing rural districts to be comprised of up to 1 million residents by changing the standard used to measure it. That is four times greater than the current cap of 250,000;
  • Allowing a congressional district to be considered a "well-defined local community" to support a community charter application;
  • Eliminating a geographic limitation on trade, industry or profession charters for federal credit unions with associational common bond memberships; and
  • Streamlining the paperwork and process to allow credit unions to add groups with up to 5,000 potential members to be added to a multiple common bond federal credit union. The current rule limits these groups to 3,000 potential members.