CUNA files brief in support of NCUA in FOM suit
CUNA and 2 other organizations jointly filed an amicus brief Wednesday in defense of NCUA's revised field-of-membership (FOM) rule. The brief supports NCUA's cross-motion for summary judgement, and was filed with the U.S. District Court for the District of Columbia, where the American Bankers Association (ABA) brought suit against the FOM rule.
“The National Credit Union Administration is well within their authority to interpret the Federal Credit Union Act,” said Jim Nussle, president/CEO of CUNA. “Changes to NCUA’s field-of-membership policy have evolved as the industry and needs of consumers have evolved, and we will continue to vigorously defend credit unions' ability to best serve their members.”
In defense of the rule, the organizations contend:
- NCUA's rule is entitled to deference under Chevron, as it has been tasked by Congress to apply its expertise to develop definitions of terms such as "well-defined local community" and "rural district;" and
- NCUA's rule furthers Congressional purpose in enacting the Credit Union Membership Access Act by growing and strengthening the credit union system.
CUNA joined with the National Association of Federally Insured Credit Unions and CUNA Mutual Group to file the brief.