Comments due May 30 on proposed NCUA chartering manual changes

A set of proposed revisions to the federal credit union regulator’s chartering and field-of-membership manual is out for comment until May 30, according to a notice in Tuesday’s Federal Register.

The proposed rule was issued by the National Credit Union Administration (NCUA) Board during its Feb. 16 open meeting. It offers nine revisions that the agency said would “enhance consumer access to safe, fair and affordable financial services, especially in under-resourced communities.”

The proposed rule would, according to the notice:

  • Make four changes to the rules for underserved areas that multiple common-bond federal credit unions (FCUs) may seek to add to their fields of membership. The changes streamline existing application requirements and clarify the role of data and criteria that other federal agencies provide relating to underserved areas.
  • Simplify application requirements for community-based federal credit unions (FCUs) by eliminating the need to submit redundant or less useful information and providing a standard form for business and marketing plans.
  • Eliminate the business and marketing plan requirement for certain federally insured, state-chartered credit unions that seek to convert to a federal charter while serving the same community field of membership.
  • Expand the community-based field-of-membership affinities – relationships between a person and the geographic community – to recognize the growth of telecommuting and remote work for companies headquartered in a community “and to better capture the ongoing bond between individuals within a field of membership and their immediate family members following the death of a member.”

A technical clarification and correction is also proposed on the process for the agency to review and approve the character and fitness of a prospective FCU’s management and officials, NCUA said.

Reg lookup: Chartering and Field of Membership