NCUA heeds NAFCU’s call to reinstate removed FOMs

Following NAFCU’s request Monday that the NCUA reinstate any field of membership (FOM) statements removed due to litigation related to its 2016 FOM rule, the NCUA Tuesday issued a Letter to Credit Unions saying it is in the process of doing so.

The U.S. Supreme Court last week declined to hear the lawsuit brought by the American Bankers Association (ABA) against the NCUA over the agency’s 2016 FOM rule. NAFCU President and CEO Dan Berger said now that the legal questions are resolved, “[t]o streamline the chartering process, the NCUA should provide for a blanket reinstatement of any FOM statements removed due to the litigation. Reinstatement will allow for a quick and seamless process for credit unions to continue to provide vital financial services to re-adopted members, particularly in underserved areas.”

In the Letter to Credit Unions, NCUA Chairman Rodney Hood said the Supreme Court’s decision “ends nearly four years of uncertainty and helps the NCUA foster greater financial inclusion for all Americans.”

“The lack of financial access is especially prevalent in rural communities, which have experienced the withdrawal of financial institutions over the last decade. The Supreme Court’s decision will assist the agency’s efforts to bring these important and often overlooked communities back into the financial mainstream,” Hood added.


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