Removing Barriers Blog

Bankers’ Lawsuit Against NCUA Dismissed
Posted January 26, 2017 by CUNA Advocacy

The U.S. District Court for the Eastern District of Virginia granted NCUA’s motion to dismiss the Independent Community Bankers of America's (ICBA) lawsuit against NCUA for its recent member business lending (MBL) rule.  The court in a written opinion found that ICBA lacked standing and timeliness for the claim.  Furthermore, the judge stated that even if the ICBA had established standing and timeliness, it still would have found that the rule satisfied the requirements established by the Administrative Procedures Act and existing case law.

CUNA and NAFCU filed an amicus brief supporting NCUA’s rulemaking authority.  Dan Berger, president/CEO of NAFCU, and Jim Nussle, president/CEO of CUNA stated “The court made the right decision in granting NCUA’s motion to dismiss ICBA’s groundless lawsuit. We had maintained all along that this was nothing more than a frivolous and ill-conceived effort by the bankers. Today’s decision is a clear message that NCUA acted well within its statutory authority when it issued its member business lending rule. The CUNA/League system and NAFCU applaud today’s ruling because it is a huge win for Main Street businesses which look to credit unions to secure much-needed access to capital.  Perhaps the bankers should put more effort into serving their own customers instead of filing meritless lawsuits that only result in wasted time and money.”

The ICBA can appeal the court’s decision to dismiss the case, but we would expect the appellate court to also find the lawsuit meritless.