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The NCUA's final field-of-membership rule – a NAFCU-sought update that provides long overdue regulatory relief to credit unions – will go into effect Feb. 5, 2017.

The final rule was published in the Federal Register today. Under the final rule, a federal credit union will be able to apply to serve an area adjacent to its existing core-based statistical area or single political jurisdiction, or it may apply to convert to a community charter that includes an area adjacent to a core-based statistical area. NAFCU supported all three provisions.

Other NAFCU-sought provisions in the final rule include updated provisions on rural districts and underserved areas; expanded options for multiple-common-bond credit unions to add potential members; expanded options for single-common-bond credit unions based on a trade, industry or profession; and the improved process for applying to expand membership.

The final rule also removes congressional districts from the definition of a "well-defined, local community."

The NCUA Board issued the final rule in October along with a new proposed FOM rule which will raise the population cap for well-defined communities from 2.5 million to 10 million – a reform NAFCU has pushed for. Comments on the new proposal are due on Friday.

More information about the FOM proposal is available in NAFCU's Regulatory Alert.