CUNA, NAFCU Pan NCUA Proposal, Bankers Approve

Credit Union Journal, The, September, 2008

Both major credit union trade associations are panning an NCUA plan to dramatically alter the current federal regulatory process for approving multiple group credit unions' applications to serve underserved areas. At the same time, the American Bankers Association indicated it supports NCUA's plan. In a comment letter, CUNA, questioning the very basis for the plan, said it has a "fundamental disagreement with the basic rationale for the proposal and the analysis of the Federal Credit Union Act's provisions regarding underserved areas that underlie the proposal."

"While we appreciate efforts to clarify and update rules, we are not aware of problems with the current process that indicate that the (field of membership) FOM Manual provisions on underserved applications are not clear and which would justify a broad ...