Appeals Court Upholds Most of Field of Membership Rule

A Federal Appeals Court Opinion Upholds an NCUA Rule, allowing Credit Unions to Expand FOM.

The U.S. Court of Appeals for the D.C. Circuit on Tuesday overturned a lower court ruling that found that the NCUA had violated the Administrative Procedures Act when it drafted its field of membership rule. The American Bankers Association challenged the 2016 rule soon after it was filed, claiming that the NCUA improperly defined “combined statistical areas,” or CSAs, when it wrote its field of membership rule.

The circuit court left intact the lower court's holding that allowed credit unions to serve adjacent areas, but asked the NCUA to provide additional explanation for the removal of a requirement to serve the "core" of a Core-Based Statistical Area, which NCUA should be able to remedy by providing additional information to the District Court.