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| Today: NAFCU Attends FOM Appeal Oral Arguments |
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A federal appeals court today will hold oral arguments in the appeal of the lower-court decision in a lawsuit challenging the NCUA's field of membership (FOM) rule. NAFCU will attend today's hearing; the association maintains that FOM reforms are well within the NCUA's legal authority and has fought against the American Bankers Association's (ABA) assertion that credit unions engage in redlining.
The arguments are being held by the U.S. Court of Appeals for the D.C. Circuit; they are set to begin at 9:30 a.m. Eastern.
In March 2018, the U.S. District Court for the District of Columbia upheld two challenged portions of NCUA's FOM rule and struck down two provisions in a lawsuit filed against the agency by the ABA. The NCUA appealed the decision in May and ABA cross-appealed in June.
After the NCUA's brief was submitted, NAFCU, CUNA and CUNA Mutual Group jointly filed an amicus brief in support of the agency's appeal, arguing that "this lawsuit is a clear and transparent attempt by bank lobbyists to hamstring credit unions' ability to help more American consumers."
The ABA, in its brief, argued that credit unions engage in redlining. NAFCU has repeatedly highlighted that credit unions have not engaged in the illegal and discriminatory practices of banks, including redlining, because credit unions were established to offer provident credit to any member in their field of membership. Considering credit unions already work so hard to serve their communities, NAFCU continues to strongly oppose all efforts to extend the Community Reinvestment Act (CRA) to credit unions.
NAFCU has urged the NCUA to continue efforts to modernize FOM rules in its letter on 2019 priorities.
In the ABA lawsuit, the provisions declared to exceed the NCUA's statutory authority include those that automatically qualify a combined statistical area (CSA) with fewer than 2.5 million people to be a local community and the increase to 1 million people the population limit for rural districts. The court's decision led to 43 credit unions reverting their new FOM charters.
Copyright 2019. NAFCU. (link) |
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