NCUA Proposes Liberalizing Membership Rules to Assist Underserved Communities

The National Credit Union Administration ("NCUA") Board proposed amendments to its chartering and field of membership ("FOM") rules with the goal of expanding financial services made available to low- and moderate-income communities.

The proposed amendments would modify the NCUA's Chartering and Field of Membership Manual by:

• streamlining existing application requirements for certain federal credit unions ("FCUs");
• eliminating the need to submit "redundant or less useful information" and providing a standard form for business and marketing plans for community-based FCUs (as well as eliminating the business and marketing plan requirement for certain federally insured, state-chartered credit unions seeking to convert to a federal charter while serving the same area);
• expanding community-based FOM affinities to account for the increase in telecommuting and remote work; and
• implementing technical clarifications.

The NCUA determined that due to the scope of the proposed changes, the proposal would benefit from an extended opportunity for public input and provided a 90-day comment period which will close on May 30, 2023.