June 29, 2017

NAFCU, CUNA, CUNA Mutual defend NCUA's FOM rule in court

NAFCU, CUNA and CUNA Mutual Group lodged support jointly for the NCUA's field of membership rule in an amicus brief filed Wednesday in the U.S. District Court for the District of Columbia.

The brief supports the NCUA's cross-motion for summary judgment against the lawsuit filed by the American Bankers Association last December.

The ABA is challenging the NCUA's interpretation of Federal Credit Union Act requirements for community-based credit unions as amended by the 1998 Credit Union Membership Access Act. In their brief, the credit union groups argue that the NCUA's rule is entitled to deference under Chevron and that it furthers Congress' purpose in enacting CUMAA to grow and strengthen the credit union industry.

"NAFCU believes that all credit unions, as not-for-profit, cooperative financial institutions, should be able to grow and adapt to the needs of their member-owners," said Dan Berger, president and CEO of NAFCU. "The National Credit Union Administration's interpretation of the Federal Credit Union Act is a reasonable one, and we will remain steadfast in supporting it."

"The National Credit Union Administration is well within its authority to interpret the Federal Credit Union Act," said Jim Nussle, president and CEO of CUNA. "Changes to the NCUA's field of membership policy have evolved as the industry and needs of consumers have evolved, and we will continue to vigorously defend credit unions' ability to best serve their members."

"Credit unions play an integral role in serving members and helping them build financial security," said Robert N. Trunzo, president and CEO of CUNA Mutual Group. "Over the years, we have stood proudly to defend and promote credit unions' fields of membership, such as with the Credit Union Campaign for Consumer Choice, and we're pleased to join forces with CUNA and NAFCU to file this brief in support of the rule."