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New FOM Rule to Take Effect in One Week

Mon, Jan 30, 2017

Alexandria, Virginia

NCUA’s new field-of-membership rule takes effect one week from today on Monday, February 6, 2017. To help credit unions prepare for the new rule, the agency is hosting a free, 90-minute webinar on Wednesday, Feb. 1. at 2 pm. Online registration is now open here, which is also the link to be used to log into the webinar. The NCUA has provided a comparison chart that highlights the FOM rule changes.

The Association held its own FOM briefing last month for member credit unions. The briefing focused on two particular provisions of the impeding rule change. Both provisions fall under credit unions with multiple common bonds.  The first was the inclusion of select employee group (SEG) contractors. This change in the rule would allow for parity with single common-bond charters in being able to add persons who work regularly for an entity under a contract to any multiple SEG sponsors listed in a credit union’s charter, provided the sponsor and contractor have a strong dependency relationship. For example, workers in a hospital cafeteria hired by a third party contractor that handles the hospital’s food service would be eligible for membership in the hospital’s credit union.

The second provision of great interest was the inclusion of office or industrial park tenants in the FOM. The new rule clarifies that a credit union with a location in an office building, office/industrial park, or shopping center may extend membership to other tenants of that immediate park – subject to two conditions: that each employer/tenant group must have fewer than 3,000 employees that work in that particular park, and only those employees who work regularly at the park during their employer’s tenancy in the park would be eligible. 

The NCUA webinar will cover topics that include:

  • Regulatory changes to modernize options available for:
  • Community charters
  • Rural districts
  • Underserved areas
  • Multiple common-bond expansions
  • Trade, industry, or profession groups, and
  • Credit unions serving a branch of the United States’ armed forces;
  • The type and extent of information a federal credit union should submit to support an application to expand its field-of-membership; and
  • NCUA’s internal procedures for implementing the new field-of-membership rule.

Credit unions can submit questions in advance at