NCUA outlines CSA, CBSA application requirements

NCUA

Amendments to the NCUA’s chartering and field-of-membership rules go into effect Oct. 14, NCUA Chairman Rodney Hood wrote in a letter to federal credit unions (20-FCU-03). These changes will allow a credit union applying for NCUA approval of a community charter, expansion, or conversion to designate a Combined Statistical Area (CSA) or an individual, contiguous portion of a CSA as a well-defined local community (WDLC) if the area has a population of 2.5 million or less.

Beginning Oct. 14, 2020, prospective and existing federal credit unions seeking a community charter may use a CSA or portions of a CSA (within certain limitations, as defined in the rule) as a basis for defining their proposed service area without documenting how a CSA’s residents interact or share common interests.

The rule also clarifies that an applicant credit union must provide the NCUA with the business rationale used to define a CSA or Core-Based Statistical Area (CBSA) if the defined area does not include an area’s largest county or named city.

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