Donovan: FOM modernization advances top CU priority

House passage of the Expanding Financial Access for Underserved Communities Act helps credit unions fight against banking deserts where they exist, CUNA Chief Advocacy Officer Ryan Donovan said on CUBroadcast. The bill passed the House Wednesday as part of a larger piece of legislation.

“Field of membership reform is one of the top priorities we have, so getting this legislation through the House is a big deal,” Donovan said. “Now we have to get it through the Senate.”

The bill:

• Allows all federal credit unions to add underserved areas to their field of membership.
• Exempts business loans made in underserved areas from the member business lending cap.
• Expands the definition of an underserved area to include New Market Tax Credit areas and any area that is more than ten miles from the nearest financial institution branch.