The National Credit Union Administration’s (NCUA) proposed field-of-membership (FOM) changes would reduce unnecessary burdens and increase efficiency in the FOM application process, the Credit Union National Association (CUNA) wrote to the agency this week.
NCUA proposed the changes at its February meeting, with the intention of streamlining access to credit unions.
“Today, the archaic FOM restrictions to which credit unions are subject are antithetical to the goal of financial inclusion and economic equity, and they impede credit unions more fully fulfilling their statutory mission to promote thrift and provide access to credit for provident purposes,” the letter reads. “We consistently urge Congress to relax or eliminate these restrictions. This proposed rule represents an important step toward a more inclusive approach to credit union membership. CUNA strongly supports this proposed rule, as the changes contemplated would help credit unions deliver necessary financial services to more Americans.”
Specifically, the proposal would:
Correct unintended consequences of prior rules, including a provision that may prevent credit unions from expanding into certain underserved rural areas.