ARLINGTON, Va.—NAFCU Monday urged leaders of the House and Senate to support NCUA’s proposed updates to its field-of-membership rules, saying the changes will help credit unions better serve their members.
In a letter from NAFCU SVP-government affairs and general counsel Carrie Hunt, the trade association also listed some important things about the FOM changes lawmakers should know, including:
- The proposal provides regulatory relief, as it streamlines NCUA’s chartering and FOM procedures.
- The Federal Credit Union Act remains intact and this proposal does not remove the act’s limitations on credit unions charters.
- Population caps and geographical boundaries are other areas of NCUA’s rules that are not statutorily mandated, and which the agency could provide further regulatory relief.
"NCUA can enact constructive regulatory relief under the agency’s current authority by streamlining its chartering and FOM procedures, as well as changing its arbitrary regulatory framework," Hunt wrote. "NAFCU believes NCUA’s proposal is firmly in the agency’s existing legal authority."
Hunt noted that the proposal is out for a 60-day comment period and is strongly supported by many in the credit union industry.