NAFCU, CUNA, CUNA Mutual defend NCUA’s FOM rule in court

NAFCU, CUNA and CUNA Mutual Group lodged support jointly for the NCUA’s field of membership rule in an amicus brief filed Wednesday in the U.S. District Court for the District of Columbia.

The brief supports the NCUA’s cross-motion for summary judgment against the lawsuit filed by the American Bankers Association last December.

The ABA is challenging the NCUA’s interpretation of Federal Credit Union Act requirements for community-based credit unions as amended by the 1998 Credit Union Membership Access Act. In their brief, the credit union groups argue that the NCUA’s rule is entitled to deference under Chevron and that it furthers Congress’ purpose in enacting CUMAA to grow and strengthen the credit union industry.

“NAFCU believes that all credit unions, as not-for-profit, cooperative financial institutions, should be able to grow and adapt to the needs of their member-owners,” said Dan Berger, president and CEO of NAFCU. “The National Credit Union Administration’s interpretation of the Federal Credit Union Act is a reasonable one, and we will remain steadfast in supporting it.”

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