NCUA’s Board Agenda: Voluntary Mergers, FOM, and MBL

Logo for the National Credit Union Administration

The National Credit Union Administration’s (NCUA) Board of Directors will meet this coming Thursday, June 21, at 7 a.m. (Pacific) to consider a final rule for voluntary mergers.

As proposed, this rule would expand the definition of “merger related financial arrangements” and to whom it applies, and it would allow member-to-member communications regarding the merger. While no details are available until the draft final rule is published on the morning of the meeting, it’s expected the voluntary mergers rule and the member-to-member communication component will be administratively much easier than what was proposed, while still providing a method for members to share their views.

Also on the meeting agenda is a Field of Membership (FOM) Final Rule. The board was holding off on issuing this rule until the American Bankers Association (ABA) lawsuit for the Dec. 2016 FOM rule was settled. The agenda indicates the NCUA is ready to move forward with this final rule that further expands the FOM for community charters.

As proposed, the FOM rule would:

  • 1) Give applicants for community charter approval the opportunity to submit a narrative to establish common interests or interaction among residents of the area it proposes to serve, thus qualifying the area as a well-defined local community.
  • 2) Increase up to 10 million the population limit on a community consisting of a statistical area or portion thereof.
  • 3) Permit a credit union to designate a portion of the area as its community without regard to division boundaries when such area is subdivided into metropolitan divisions.

It is expected the draft final rule will include all three of these proposed elements, but the increase in the population cap may not be as high as the 10 million originally proposed.

The NCUA board’s agenda also includes a briefing on the recent Member Business Loans (MBL) Final Rule. This agenda item is a discussion of the action taken by the board when it approved that loans for non-owner occupied 1- to 4-unit family dwellings no longer count as member business loans. The board approved this by notation vote on May 30, and this agenda item allows a public discussion of the action to be on record.

Also on the agenda is a briefing on the agency’s Enterprise Solution Modernization Program.

The NCUA board meeting will be broadcast “live” online; access the NCUA’s homepage at Open board meetings are also tweeted live (follow @TheNCUA on Twitter).

Nominations for NCUA Board and BCFP Director

On Monday President Donald Trump announced his intent to appoint key administration officials, including:

  • NCUA Board Nominee—Rodney Hood has been nominated to fill the seat currently held by Democrat Rick Metsger on an expired term. Hood, a Republican, formerly served on the NCUA board from October 2005 to August 2010, appointed by President George W. Bush. Hood currently is the corporate responsibility manager for JPMorgan Chase. As a former member of the NCUA board, Hood was opposed to excessive regulations. If confirmed by the U.S. Senate, Hood would serve the remainder of a six-year term expiring Aug. 2, 2023.
  • BCFP Director Nominee—Kathleen Kraninger has been nominated to be director of the Bureau of Consumer Financial Protection (BCFP) for a term of five years. Kraninger currently serves as the associate director for general government at the Office of Management and Budget.

For more information on the appointments, view the recent White House announcement.

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