NCUA final FOM rule, proposal include NAFCU-sought changes
The NCUA Board, voting 2-0, today approved a revised field-of-membership rule and issued a new proposal raising to 10 million the population cap for well-defined communities and allowing credit unions seeking community charter expansions to present a narrative as to why certain areas would qualify for inclusion.
The new proposed measures are out for a 30-day comment period. The larger, final field-of-membership rule is set to take effect 60 days after publication in the Federal Register.
Most of the provisions from last year's proposal are included in NCUA's final field-of-membership rule. NAFCU is pleased that federal credit unions may now apply to serve an area adjacent to its existing Core-Based Statistical Area or single political jurisdiction, or may apply to convert to a community charter that includes an area adjacent to a Core-Based Statistical Area.
The final rule also removes congressional districts from the definition of a "well-defined, local community." It also does not include NCUA's proposal to modify the definition of "service facility" for multiple common bond federal credit unions to include transactional website or mobile platforms.
"NAFCU applauds NCUA Board Chairman Rick Metsger and Board Member J. Mark McWatters for making final the most comprehensive field-of-membership reform initiative that the credit union industry has seen in more than 10 years," said NAFCU President and CEO Dan Berger. "We also thank the board for listening to credit unions' and NAFCU's suggestions in its new proposal regarding accepting a narrative approach as to why a particular area meets a credit union's field of membership and to raise to 10 million the population cap for well-defined communities, and we look forward to submitting comments.
"NAFCU is carefully reviewing the final rule and looks forward to working with NCUA as this rule is implemented," Berger added.
The board's new field-of-membership proposal contains several NAFCU-sought changes. The first is to allow credit unions seeking approval to form, expand or convert to a community charter the option to submit a narrative as to why a particular area meets their field of membership. The second is to increase to 10 million the population limit on a well-defined local community. The third objective is to permit a credit union to designate an individual portion of a Core-Based Statistical Area as its community no matter the metropolitan division boundaries within the area.
In other actions today, the board:
- Received a briefing on supplementary capital that noted the agency is doing continued research on the topic and will develop an advanced notice of proposed rulemaking for the board's consideration.
- Issued a joint agency proposal on flood insurance that would require lenders to accept private flood insurance on a discretionary basis and subject to certain restrictions. The proposal would fulfill the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. It is being released jointly by the NCUA, the Office of the Comptroller of the Currency, the Federal Reserve, the FDIC and the Farm Credit Administration.
- Finalized a rule adjusting civil money penalties.
- Finalized a name change for the Office of Consumer Protection to the Office of Consumer Financial Protection and Access to better reflect its functions and role in facilitating consumer access to credit unions.
Compliance Monitor - December 2018
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