Removing Barriers Blog

CUNA Advocacy Wins NCUA Proposed Expansion on Field of Membership
Posted November 19, 2015 by CUNA Advocacy

Earlier today, the NCUA Board proposed comprehensive changes to its field of membership regulations.  The proposal would give federal credit unions a broader menu of field of membership options to respond to changes in the marketplace and technology and advancement of state credit union charters.  

In June, CUNA urged NCUA to reform these regulations and made dozens of recommendations to remove from regulation requirements that are not required by law.  NCUA’s proposal includes several CUNA-suggested changes, including:

  • Expanding the population limit in rural district from 250,000 to 1 million;
  • Allowing a Congressional district to serve as a Well Defined Local Community, thus allowing credit unions in states with only one Congressional district to serve the entire state;
  • Adding flexibility to the use of Core Based Statistical Areas by eliminating the need to serve the “core” and allowing areas to be combined; and
  • Streamlining the paperwork process for groups with 3,000 or more potential members to be added to a multiple group credit union.

While we will do a more detailed analysis of the proposal, our initial reaction is very positive.  We will be urging credit unions to study the proposal, consider its potential impact on their operation, and provide comments to help improve the proposal before it is finalized.

The Board also adopted the 2016/2017 Operating Budget and established the Overhead Transfer Rate and Operating Fee Assessment Scale.  A summary of the board meeting can be viewed here.