NCUA to seek appeal to FOM rule

NCUA to seek appeal to FOM rule

The National Credit Union Administration is considering an appeal to the U.S. District Court for the District of Columbia’s ruling that vacated two provisions of the agency’s fild-of-membership rule, according to a Credit Union National Association press release.

NCUA filed a notice with the court April 19, which set forth the agency’s implementation plan to comply with the ruling. The notice indicates that while new communutiy charters will no longer be granted on the basis of the expanded definition o rural district and combined statistical areal, credit unions will not be required to de-list members that joined prior to April 4, 2018, according to CUNA’s release.

CUNA said in its release that it believes the approach is fair given the circumstances and the reliance on the valid law that stood at the time such members joined a credit union.

“The NCUA is the prudential regulator for the credit union system, and we support their delegated authority to promulgate rules and regulations under which credit unions can serve their member-owners,” said CUNA President and CEO Jim Nussle. “CUNA recently completed a very rigorous statistical analysis finding that broader fields of membership unambiguously create substantial benefits to credit unions, their members and the overall safety and soundness of the financial sector.”

The notice also points out that some of the prior ruling could be overturned in an appeal.

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