The NCUA board on Oct. 27 will consider a final rule revising the agency’s Field of Membership regulations—a move that could set up a contentious fight with the banking community.

In addition to the final rule, the board also will consider a proposed FOM rule, although details of that plan will not be available until the board meeting.

When originally proposed, the FOM changes included a modification to the definition of service facility for multiple common bond credit unions to include a transactional website or mobile platform that, at a minimum, accepts deposits or loan applications, or disperses loans.

The proposed rule would also grant FOM regulatory relief to state chartered credit unions.

The rule didn't propose expanding the community charter core area population limit beyond 2.5 million. However, the plan would expand the rural district population limit to one million, regardless of the state in which the majority of the district's population is located.

The Independent Community Bankers of America has strongly implied that if the final rule makes substantial changes to the FOM regulations, it would sue the NCUA. In addition, banking groups have said that a battle over FOM rules could go to Capitol Hill, where they may challenge the tax-exempt status of credit unions.

Congress may consider comprehensive tax reform next year and that could create a forum for debate over credit union tax status.

During the Oct. 27 meeting, the NCUA board also will receive a staff briefing on supplemental capital as well as a final rule updating civil penalties.

That afternoon, the board will hold a briefing on the NCUA budget plan, which calls for a $2.8 million increase next year.

Instant Insights /

NCUA Board to Consider Final Field of Membership Rules on Oct. 27

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