Removing Barriers Blog

ABA Files Motion for Summary Judgement in FOM Lawsuit
Posted May 30, 2017 by CUNA Advocacy

The American Bankers Association (ABA) filed a motion for summary judgment Friday in its suit against NCUA and its revised membership (FOM) rule.  The ABA filed the lawsuit in U.S. District Court for the District of Columbia last December contending that the FOM rule finalized in October 2016 “expands the field of membership of community-based credit unions far beyond the limits imposed by Congress and previously recognized by NCUA.”

The summary judgement motion points to four areas where it contends that the NCUA oversteps what is allowed by the Federal Credit Union Act by:

  • Considering a Combined Statistical Area identified by the Office of Management and Budget as a single local community;
  • Not requiring a credit union that is approved to serve a Core-Based Statistical Area (CBSA) to serve the core of the CBSA, which “effectively authorizes redlining;”
  • Allowing a credit union to serve areas adjacent to a local community because even though those individuals reside outside of the community’s boundaries; and
  • Expanding the definition of rural district where it can include an entire state and portions of another state. 

CUNA obviously disagrees with the ABA’s claims and is stalwart in our support the NCUA's position in the lawsuit.   We plan to file an amicus brief to support the FOM rule.   The NCUA has until June 21 to file its opposition to ABA’s motion for summary judgement and cross-motion for summary judgment.