A: Until the NCUA adopts a final rule, ICBA is precluded from filing a lawsuit.

An ICBA spokesperson said while the association is waiting to see the final rules before deciding what to do, but its website was a bit more definite.

While bankers are waiting outside the courthouse door, the ICBA is raising money online with the title, "Stop the Credit Union Grab."

On his blog, ICBA President/CEO Camden Fine does not mince words in describing his low opinion of the NCUA and its rules — in this case, the member business lending rules.

"After years of evolving from a regulatory agency to a cheerleader for its tax-exempt industry, the NCUA has finally gone too far," Fine said. "In attempting to serve as the regulatory rubber stamp for a handful of growth-oriented credit unions seeking to expand at all costs, the NCUA has overstepped its legal bounds."

The ICBA lawsuit over the MBL rules contains a section on the forthcoming FOM rules.

"That struck me as a sure indication that the bank trades intend to follow through in court whenever FOM is finalized," John McKechnie, senior partner at Total Spectrum, said.

The banking lobby is unlikely to stop there, he said, adding that when the FOM rules were proposed, the bankers went to Capitol Hill with a long laundry list of grievances.

"I have seen no evidence that their displeasure has lessened one iota," McKechnie said. "It's just part of a wider reality in Washington: It seems that no matter the issue, if credit unions want it, the bank lobby is going to try to stop it. And I don't think the banks are going to change their tactics unless credit unions make them pay a price for this constant opposition."

Bankers are certain to sue, said former NCUA Board Chairman Geoff Bacino, now a partner with Bacino & Associates.

Bacino said that he would not expect Congress to do much on the FOM rules. "Once they sue, it becomes a legal question," he said.

The NCUA issued proposed FOM rules in November and the comment period ended in February. Metsger said, at the recent NAFCU Congressional Caucus, that the final rules will be issued this fall.

At the time the rules were issued, then-NCUA Chairman Debbie Matz said that revisions were needed because the credit union regulatory regime was outdated.

"Although the Credit Union Membership Access Act of 1998 was intended to facilitate membership, in fact, it is constraining when compared with today's more permissive state laws," she said.

The proposed FOM rules would provide regulatory relief to state-chartered credit unions. The plan doesn't propose expanding the community charter core area population limit beyond 2.5 million. However, it would expand the rural district population limit to one million.

Federal credit unions would also be able to apply to serve combined statistical areas, as designated by the Office of Management and Budget.

"NCUA's proposal would directly undermine the ability of taxpaying banks to serve their communities – replacing healthy, private sector financial services with government subsidized competition," James Chessen, the ABA's EVP and chief economist, wrote. "Throughout this proposal, the board oversteps its regulatory authority — sidestepping Federal Credit Union Act requirements in the name of industry growth and replacing its own judgment for that of Congress."

Commenting on the rules, credit union officials said that while they were pleased, they wanted the NCUA to go further.

"This proposed rule is the first step in the process of updating NCUA's FOM regulation," CUNA President/CEO Jim Nussle wrote. "CUNA supports the proposed rule as a good first step, but acknowledges that NCUA can do even more. While we recognize that NCUA is restricted by provisions of the Federal Credit Union Act, we believe there is additional flexibility to update these requirements so they are current with today's economic and technological environment."

For instance, Nussle said CUNA needs to streamline its process for approving FOM expansions.

NAFCU Executive Vice President of Government Affairs/General Counsel Carrie Hunt said she hopes that the NCUA makes some changes in the final rule.

"We hope in the final rule the agency will heed the concerns and recommendations we have put forth to create a positive regulatory and competitive climate for credit unions that address much-needed changes in technology, state laws and the financial services environment," she said.