New FOM Compliance in Kansas
"Things seem to be working OK," said John Smith, administrator of the Kansas Department of Credit Unions in assessing various thresholds under complicated FOM formulas governing population and county limits.
For weeks, examiners have been meeting with representatives of the nine CUs unions most affected by the change as they reconfigure their FOMs under the statute, which was enacted in April.
The so-called compromise FOM law, aimed at curtailing statewide branching and mergers, has several implementation markers leading up to the final Jan. 1, 2009 enforcement.
Meanwhile, the most directly affected credit unions and the Kansas Credit Union Association have been working with lawyers to draft new branch strategies for regulatory approval.
While disparaging the law as a "real tragedy and injustice for Kansas consumers," the $555 million Boeing Wichita CU, said it was developing a workable compliance program potentially including cutting its 46-county FOM in half.
The CU's existing branch network, mostly in metropolitan Wichita, is grandfathered but future membership growth under its wider FOM charter across the state will be altered and restricted, said Wade Bruendl, acting CEO; Gary Regoli left Boeing Wichita to join a Florida CU.
Smith said during the last three months he or members of his staff attended 11 KCUA meetings across the state from Garden City to Kansas City to review with the CEOs the particulars of the FOM law that contains a one million MSA population barrier.