Skip to main content

Proposed FOM changes would streamline ability to reach underserved

February 16, 2023

NCUALogo

The NCUA Board proposed chartering and field-of-membership changes and issued its final cyber incident reporting rule at its Thursday meeting. The board also heard a quarterly update on the share insurance fund, which noted an increase in the fund's equity ratio to 1.30%."

The proposal would amend the chartering and FOM rules through nine changes to enhance consumer access to financial services, especially in low- and moderate-income communities while reducing duplicative or unnecessary paperwork and administrative requirements.

“Getting credit union services to more communities across the country is important to CUNA, state leagues and the credit unions we serve, and making that easier to achieve has a big impact on access,” said CUNA Deputy Chief Advocacy Officer Jason Stverak. “While we need to review the proposal in detail, we thank the NCUA board for working to streamline the ability of credit unions in reaching underserved communities."

Specifically, the proposal:

  • Includes four changes on underserved areas that multiple common bond federal credit unions may seek to add to their FOMs, designed to streamline existing application requirements and clarify the role of data and criteria that other federal agencies provide relating to underserved areas.
  • Includes three provisions to simplify application requirements for community-based federal credit unions by eliminating the need to submit redundant or less useful information and providing a standard form for business and marketing plans.
  • Eliminates 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 FOM.
  • Expands the community based FOM affinities to recognize the growth of telecommuting and remote work for companies headquartered in a community.
  • Includes a provision to allow all federal credit unions to better capture the ongoing bond between individuals within a field of membership and their immediate family members following the death of a member.

The cyber incident reporting final rule requires federally insured credit unions to notify NCUA as soon as possible—but no later than 72 hours after—it reasonably believes a reportable cyber incident has occurred.

This notification requirement provides an early alert to the NCUA and does not require credit unions to provide a full incident assessment to the NCUA within the 72-hour timeframe.

Comments

Popular posts from this blog

Let the Truth be Told - Why a New NCUA Rule Could Jolt Credit Union Innovation

The National Credit Union Administration has finalized a rule to improve board and executive succession planning within the credit union industry. This strategic move aims to curb the trend of mergers driven by technological stagnation and poor succession strategies, ensuring more credit unions maintain their independence and enhance their technological capabilities. By Ken McCarthy, Manager of marketing communications at Tyfone Credit unions are merging out of existence because of an inability to invest in technology, the National Credit Union Administration Board wrote when introducing its now finalized rule on board succession planning. The regulator now requires credit unions to establish succession planning for critical positions in their organizations. But it’s likely to have even wider effects, such as preserving more independent charters and shaking up the perspectives of those on credit union boards. “Voluntary mergers can be used to create economies of scale to offer more or ...

Speakers & Sessions For NCOFCU 24 San Antonio TX.

National Council of Firefighter Credit Unions Inc (NCOFCU)  Speakers and Schedule! It is the National Council of Firefighter Credit Unions (NCOFCU) "GO TO Conference" for credit unions serving first responders! Who should attend? CEO's, VP's Directors and Staff See What's Planned Register Here! Bring your spouse, bring a guest to enjoy San Antonio, TX River Walk 4 Days Golf 16 + Sessions Alamo Reception Closing Dinner Right on the San Antonio River Walk Several Networking events Open Forums Idea Exchange Events Panel Discussions of CU Leaders National & Industry Speakers Trends in First-Responder Credit Unions Director & Volunteer Sessions Exhibitors ShowcaseAnd  So Much More! HOTEL REGISTER HERE

Armand Parvazi MBA CUDE - Last Friday marked his last day with New Orleans Firemen’s Federal Credit Union.

It’s been an incredible journey, but it’s bittersweet to announce that Friday marked my last day with New Orleans Firemen’s Federal Credit Union. We've accomplished so much together in my six years as Chief Administrative and Development Officer. Some of the highlights: Implemented a data-driven marketing strategy that delivers over 1,800% annual ROI. Developed automated triggers to ensure members receive the right offers at the right time. Grew assets by 61% and increased products per new member from 1.88 to 2.62. Converted online banking to enhance the member experience. Introduced a loan origination system for faster and more efficient loan processing. Transitioned to a mobile-first financial institution to meet members where they are. Pioneered the first Cancer Care loan pause program in the nation (in collaboration with Andy Janning ) Secured nearly $17 million in grants for our impactful work. Expanded our field of membership to 35 parishes and counties and added numerous fi...