Newsroom

The NCUA on Wednesday appealed the U.S. District Court for the District of Columbia's decision on the agency's field-of-membership (FOM) rule. The court's March ruling upheld two challenged portions of rule and struck down two provisions in a lawsuit filed against the agency by the American Bankers Association (ABA). NAFCU stands behind the NCUA's decision to issue the final rule, which was the first meaningful update to the agency's FOM rules over the past decade.

The court ruled the provisions that exceeded the NCUA's statutory authority include those that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and the increase to 1 million people the population limit for rural districts.

The court ruled in favor of the NCUA's rule on all other provisions.

The ABA has until May 29 to cross-appeal.

The NCUA's FOM rule took effect in February 2017.

NAFCU, CUNA and CUNA Mutual Group filed an amicus brief supporting NCUA's FOM rule last June. The association believes the NCUA's FOM rule is well within the agency's legal authority and is in keeping with the Federal Credit Union Act.

In December 2016, the ABA filed suit against the NCUA over this rule.