NCUA files response to FOM lawsuit, CUNA plans support
The NCUA filed a response to the lawsuit against its final field-of-membership (FOM) rule brought by the American Bankers Association (ABA). CUNA is tracking the lawsuit, and plans to support the NCUA in its defense of the rule.
The NCUA finalized the rule last October, designed to provide more flexibility in the definition of communities, and to facilitate consumer and small business access to credit unions and make it easier for credit unions to serve their members.
CUNA strongly supports the final rule, and CUNA President/CEO Jim Nussle praised the NCUA for providing much needed regulatory relief in modernizing the NCUA’s FOM rules.
The ABA filed its lawsuit in December, and Nussle pledged that CUNA and its partners would “vigorously defend” the rule.
In its response to the ABA’s suit, the NCUA asks the judge to dismiss the lawsuit, while denying allegations that the agency’s FOM final rule was arbitrary and capricious, as argued by bankers. It also states the final rule does not violate the Administrative Procedures Act.
CUNA agrees with the NCUA’s legal analysis. More information can be found on CUNA’s Removing Barriers Blog.