NCUA Considering Appeal to FOM Rule
FOR IMMEDIATE RELEASE
CONTACT: Lauren Williams – CUNA Communications; (202) 626-7642; firstname.lastname@example.org
Washington, DC (April 20, 2018) – The NCUA is considering an appeal to the U.S. District Court for the District of Columbia’s ruling that vacated two provisions of the agency’s field-of-membership (FOM) rule. The Credit Union National Association has been a vocal defender of the NCUA against any challenges to their express authority to promulgate the rule.
NCUA filed a notice with the court on Thursday which set forth the agency’s implementation plan to comply with the ruling. The notice indicates that while new community charters will no longer be granted on the basis of the expanded definition of rural district and combined statistical area, credit unions will not be required to de-list members that joined prior to April 4, 2018.
CUNA believes the approach is fair given the circumstances and the reliance on the valid law that stood at the time such members joined a credit union.
“The NCUA is the prudential regulator for the credit union system, and we support their delegated authority to promulgate rules and regulations under which credit unions can serve their member-owners,” said President/CEO Jim Nussle. “CUNA recently completed a very rigorous statistical analysis finding that broader fields of membership unambiguously create substantial benefits to credit unions, their members and the overall safety and soundness of the financial sector.”
The notice document also points out that some of the prior ruling could yet be overturned in an appeal. CUNA supports NCUA’s exercise of all available judicial and administrative means to continue modernization of its Chartering and Field of Membership Manual.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 110 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org.