NCUA Board approves FOM rule changes, three other measures


Utilizing a live audio webcast Thursday, the NCUA’s board of directors held its monthly meeting, unanimously approving field of membership rule changes and three other measures.

The final rule revising changes to NCUA’s chartering and FOM regulations re-adopts a provision to allow applicants to designate a combined statistical area, or an individual, contiguous portion, as a well-defined local community if the chosen area has a population of 2.5 million people or less, according to the agency.

Credit unions that had their combined statistical areas removed from their FOM because of litigation will be contacted by the agency to determine if they would like those reinstated and, if so, NCUA will do so as soon as the rule is effective, according to the agency. The rule is effective 30 days after publication in the Federal Register.

“Today, with this rule, the Board is taking a critical step in the NCUA’s ongoing work to allow credit unions to alleviate some of the difficulties of low-income and underserved Americans in accessing financial services,” NCUA Chairman Rodney Hood said. “I often call financial inclusion the civil rights issue of our time, and this rule will help maintain and expand financial access to more Americans in rural and underserved communities.”

The board also approved:

  • a proposed rule that would phase-in the day-one adverse effects on regulatory capital that may result from the adoption of the CECL accounting methodology over a three year period;
  • a proposed rule that amends the NCUA’s regulation governing the assessment of an annual operating fee on federal credit unions; and
  • a request for comment on the existing overhead transfer rate and the operating fee schedule methodologies.

In addition, NCUA’s CFO, Eugene Schied, briefed the board on the agency’s revised budget estimates and expenditures in 2020.

Schied said that estimates indicate that NCUA will have a small budget surplus in the operating fund at the end of the year due to a reduction in the employee travel because of COVID-19, and the budget for the National Credit Union Share Insurance Fund administrative expenses may also see savings due to the reduction in travel.

Additional details about Thursday’s meeting can be accessed on NCUA’s website. Details about NCUA’s current budget can be accessed in the 2020 Mid-Session Budget Review.

There is no August meeting. The next NCUA board meeting is Sept. 17.

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