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NAFCU discusses FOM, nonmember services with NCUA
Members of NAFCU's Regulatory Affairs and Regulatory Compliance teams Tuesday met with staff from the NCUA's Office of General Counsel to discuss modernization of the agency’s field of membership (FOM) and chartering rules. NAFCU has previously shared the association's general support of the NCUA's recently proposed changes to its FOM rule, as they would streamline the agency's chartering procedures.
In a win for the NCUA last week, the U.S. Court of Appeals for the D.C. Circuit denied a request from the American Banker's Association for a rehearing en banc in its lawsuit challenging the agency's 2016 FOM rule.
The court's three-judge panel decision earlier this summer was largely in favor of the NCUA on key issues in the lawsuit. After the appeals court’s ruling, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt shared insights with members, noting that it strongly reaffirmed the Chevron Doctrine and the NCUA’s interpretations of the Federal Credit Union Act.
During Tuesday's meeting, the group also discussed nonmember services. Earlier this year, NAFCU Executive Vice President of Government Affairs and General Counsel encouraged the NCUA to reconsider services credit unions are allowed to provide nonmembers that fall within their field of membership.
"The NCUA's regulations regarding the types of services that may be offered to nonmembers are largely limited to certain "money transfer instruments," such as travelers checks, money orders, electronic funds transfers, and remittance transfers," wrote Hunt in a letter. "This does not reflect modernizations in payment methods because many consumers utilize prepaid cards and non-reloadable gift cards on a regular basis.
NAFCU appreciates every opportunity to share credit union concerns with the NCUA and will continue to seek opportunities to do so.