NCUA sends letter to credit unions on service facility final rule
The NCUA sent a Letter to Credit Unions Friday discussing the agency’s final rule that modernizes the definition of “service facility” in the Chartering and Field of Membership Manual, which became effective Dec. 27, 2021.
The final rule states that shared locations are service facilities for purposes of multiple common-bond federal credit union additions of groups, regardless of whether the federal credit union has an ownership interest in the shared branching network providing the locations.
NAFCU previously sent a Final Regulation Alert to members breaking down the rule, including a section-by-section analysis and detailed background information on the rule. In addition, NAFCU has previously written to the NCUA expressing support for the modernization of this rule.
Of note, NAFCU highlights its disappointment that the final rule did not include ATMs in the service facility definition for adding underserved areas, and that the rule did not recognize online and mobile banking services as meeting service facility requirements, which was requested in NAFCU’s comment on the proposed rule.
continue reading »