Removing Barriers Blog

CUNA Files Amicus Brief in Support of NCUA in Field of Membership Lawsuit
Posted June 29,2017 by vgawali

CUNA, along with the CUNA Mutual and NAFCU, filed an amicus brief in defense of NCUA’s revised Field of Membership (FOM) rule – the American Bankers Association brought suit against the rule at the end of 2016.  The brief supports NCUA’s cross-motion for summary judgement and has been filed with the U.S. District Court for the District of Columbia. 

In defense of the rule, the brief contends: 

  • NCUA's rule is entitled to deference under Chevron, as it has been tasked by Congress to apply its expertise to develop definitions of terms such as "well-defined local community" and "rural district;" and 

  • NCUA's rule furthers Congressional purpose in enacting the Credit Union Membership Access Act by growing and strengthening the credit union system. 

The NCUA is within their authority to interpret the Federal Credit Union Act, and changes to their FOM policy have evolved as the industry and needs of consumers have evolved.   CUNA will continue to monitor the progress of the lawsuit and will continue to support the NCUA's Field of Membership Rule.

Read the entire brief here.