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FOM II, voluntary mergers final rules on NCUA agenda
The NCUA yesterday released its agenda for next week's open board meeting that includes a final rule to further reform field-of-membership (FOM) rules and a final voluntary mergers rule. NAFCU has pushed NCUA's efforts to modernize FOM in order to allow credit unions to serve more consumers; the association believes these efforts fall well within the NCUA's legal purview.
"We thank Chairman [J. Mark] McWatters and Board Member [Rick] Metsger for their commitment to modernize FOM rules – credit unions must have the opportunity to grow and serve more Americans," said NAFCU President and CEO Dan Berger. "Strengthening the federal charter and pursuing regulatory relief for credit unions is at the core of NAFCU's advocacy efforts. As we stand by the agency in its lawsuit with the American Bankers Association over its first FOM reform in more than a decade, we will continue to work with the agency to pursue even more relief for the industry.
"In regard to the final rule on voluntary mergers, NAFCU and our member credit unions have previously expressed concerns about the NCUA's proposed rule. We will be closely monitoring next week's board meeting to see what is included in the final rule," Berger added.
While details of the NCUA's second FOM final rule won't be revealed until next week's board meeting, the proposal issued in Oct. 2016 contained several NAFCU-sought changes, including:
- allowing credit unions seeking approval to form, expand or convert to a community charter the option to submit a narrative as to why a particular area meets their field of membership;
- increasing to 10 million the population limit on a well-defined local community; and
- permitting a credit union to designate an individual portion of a Core-Based Statistical Area as its community no matter the metropolitan division boundaries within the area.
NAFCU also offered additional ways to reform FOM rules in its comment letter on the proposal.
The NCUA issued its proposed rule on voluntary mergers in May 2017. NAFCU has argued that the proposal a "heavy-handed approach" and would increase credit unions' regulatory burden.
Also on the agenda for next week's board meeting: briefings on recent changes to member business loans and the agency's enterprise solution modernization program.
The meeting is slated to begin at 10 a.m. Eastern Thursday.