NCUA Board meets today on FOM final and proposed rules

The NCUA Board meets this morning and is expected to approve a final field of membership rule and issue a new FOM proposal for comment. Today’s packed open meeting agenda also includes action on an interagency proposed rule on flood insurance and a briefing on supplemental capital.

NCUA issued an FOM proposal last November that would make substantive changes affecting the common-bond requirements associated with community, multiple-group, and trade, industry or profession charter types. It represents the first major revamp on these charter types in more than 10 years. NCUA in August said it had completed its review of the 11,000 comments the agency received on the proposal.

NAFCU expressed support for the proposal but has urged that more be done to give the industry regulatory relief, including: eliminating or increasing the core-based statistical area population limits, establishing a formal notification process for credit unions making FOM-related applications, and considering new ways to efficiently authorize mergers.

The joint agency proposal on flood insurance would require lenders to accept private flood insurance on a discretionary basis and subject to certain restrictions. The proposal would fulfill the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012. It is being released jointly by the NCUA, the Office of the Comptroller of the Currency, the Federal Reserve, the FDIC and the Farm Credit Administration.

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