Skip to main content

FOM proposal is ‘important step’ toward more inclusive CU membership

May 30, 2023

Growth Through Inclusion

NCUA’s proposed field of membership changes would reduce unnecessary burdens and increase efficiency in the FOM application process, CUNA wrote to the agency Tuesday. NCUA proposed the changes at its February meeting, with the intention of streamlining access to credit unions.

“Today, the archaic FOM restrictions to which credit unions are subject are antithetical to the goal of financial inclusion and economic equity, and they impede credit unions more fully fulfilling their statutory mission to promote thrift and provide access to credit for provident purposes,” the letter reads. “We consistently urge Congress to relax or eliminate these restrictions. This proposed rule represents an important step toward a more inclusive approach to credit union membership. CUNA strongly supports this proposed rule, as the changes contemplated would help credit unions deliver necessary financial services to more Americans.”

Specifically, the proposal would:

  • Make changes to underserved areas that multiple common bond federal credit unions may seek to add to their FOMs to streamline existing application requirements and clarify the role of data and criteria relating to underserved areas.
  • Eliminate 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 FOM.
  • Expand the community-based FOM affinities to recognize the growth of telecommuting and remote work for companies headquartered in a community.
  • Better capture the ongoing bond between individuals within a field of membership and their immediate family members following the death of a member.
  • Correct unintended consequences of prior rules, including a provision that may prevent credit unions from expanding into certain underserved rural areas.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

What Does PTSD in a Firefighter Look Like? A New Brain Scan Can Show You

Link Post-traumatic stress disorder (PTSD) is often described as one of the invisible scars that firefighters and others accumulate after years of dealing with trauma in their jobs. Now the scars are invisible no longer. A new tool—the SPECT scan—is offering a new way for firefighters and others with PTSD to visualize their injuries. SPECT stands for single photon emission computed tomography, and it creates 3-D scans of the patient’s brain that look at blood flow and brain activity, KTLA reports. Those scans can then be used to generate a treatment plan tailored to the specific patient based on the visual effects of PTSD. Retired Firefighter-Paramedic Matthew Fiorenza, a PTSD sufferer, told the station that the scans also help make the illness more tangible. “Looking at a picture of my brain, it just took the stigma out of it,” he told KTLA. “It’s like, okay, I’m not crazy.”  
Post a Comment
Read Complete Article HERE>»

The Pros and Cons of Tariffs

Since there has been so much discussion on Tariffs, I felt a post would benefit our membership. Grant Sheehan CEO NCOFCU Tariffs 1440 Business & Finance Background A tariff—a word derived from the Arabic arafa, meaning “to make known”— is a tax imposed by a government on goods that are imported or exported . Historically, tariffs have served as a primary source of revenue and a means to protect domestic industries, as they make foreign products more expensive, encouraging consumers to purchase locally produced goods. The tools have a checkered history, famously bolstering US textiles, German steel, Japanese cars, South Korean technology, and more, arguably contributing to major economic downturns like the Great Depression. Tariffs can be specific (a fixed fee per unit) or ad valorem (a percentage of the item's value). Purpose Economically, tariffs aim to protect domestic industries, generate government revenue, and influence trade policy. By imposing taxes on imported goods —wh...
Post a Comment
Read Complete Article HERE>»

Advice On Winning Over Gen Z In ’25

NEW YORK—As 2025 approaches the close of Q1, how can credit unions win over Gen Z? By tailoring credit rewards for a digital-first generation, a new report recommends. Gen Z is reshaping the workforce and redefining financial behaviors. As of 2024, this generation is poised to surpass Baby Boomers in workforce size and will make up 30% of the workforce by 2030. This rapid growth presents a major opportunity for financial institutions to tap into a younger, digitally native audience with distinct spending habits and financial needs, emphasized a GlobalData report authored by Zachary Johnson, specialist, campaign execution & strategy, financial services at VDX.tv. “Unlike previous generations, Gen Z’s economic journey has been shaped by inflation and delayed career starts due to the pandemic and skyrocketing living costs. These factors have made them highly dependent on credit, with Gen Zers being 23% more likely to own a credit card than Millennials at the same age, and carrying...
Post a Comment
Read Complete Article HERE>»

Hauptman Announces Changes to NCUA’s Overdraft/NSF Fee Collection

      Hauptman Announces Changes to NCUA’s Overdraft/NSF Fee Collection WASHINGTON, D.C. (March 3, 2025) – To help ensure credit unions can continue to support the needs of Americans struggling with inflation, the National Credit Union Administration will no longer publish overdraft and non-sufficient fund fee income for individual credit unions, Chairman Kyle S. Hauptman announced today. The NCUA will ...
Post a Comment
Read Complete Article HERE>»

NCUA : Ransomware Is a Serious and Growing Threat

Businesses and individuals face a dangerous and growing threat to the safety of their personal information and data in the form of ransomware. Ransomware is a form of malware that targets critical data and systems for the purpose of extortion. Once active on a victim’s network or computer, the ransomware encrypts and holds critical and sensitive data hostage until payment is made. A countdown clock usually accompanies the ransom demand and the cybercriminal usually requires payment in bitcoin or another anonymous form of payment. After receiving payment, the cybercriminal may provide an avenue for the victim to regain access to the system or data. According to the U.S. Federal Bureau of Investigation, ransomware victims in the United States have paid more than $209 million in ransom payments in the first three months of 2016, compared with $25 million in all of 2015. The ransom demands vary greatly, but averages about $500 for individuals and $10,000 for businesses. Ransomware is prima...
Post a Comment
Read Complete Article HERE>»