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NAFCU is seeking comment from member credit unions on the NCUA's proposed changes to its field of membership (FOM) rule. The changes aim to make it consistent with the U.S. Court of Appeals for the D.C. Circuit's decision in the lawsuit brought against the agency by the American Bankers Association.

In a Regulatory Alert, NAFCU highlights that the proposal:

• would re-adopt a provision to allow an applicant to designate a Combined Statistical Area (CSA), or an individual, contiguous portion of CSA, as a well-defined local community (WDLC), provided that the chosen area has a population of 2.5 million or less;
• further explain the elimination of the requirement to serve the Core-Based Statistical Areas (CBSA) in the NCUA's 2016 FOM final rule; and
• would provide the NCUA with the explicit authority to reject a credit union application for CSAs and CBSAs if the agency determines that the FOM selection reflects discrimination.

NAFCU also explains how the proposal would likely impact credit unions and provides background information on the issues in the Regulatory Alert. The association would like members' feedback on:

• whether the proposed rule provides credit unions with greater flexibility to serve more communities, including more low- or moderate-income individuals; and
• how credit unions would be impacted by the new, additional business and marketing plan requirement, specifically if requested compliance-related information would be burdensome.

Credit unions can submit comments to NAFCU through its Regulatory Alert until Dec. 6; comments are due to the NCUA Dec. 9.