The NAFCU Journal July - August 2017 - 10

INSIDE NAFCU

FOM Rule Questions Answered

I

n October 2016, the NCUA Board
finalized a revised field-of-membership (FOM) rule and issued a new
FOM proposal.

The new rule creates opportunities for
growth among a number of federal
credit unions. But evaluating those
opportunities while avoiding missteps
is not a simple task. In May, the NCUA
provided interpretive guidance on the
rule, covering community charters;
rural districts; multiple-common-bond
expansions; trade, industry and professional groups; and credit unions
that serve branches of the U.S. armed
forces. In addition, an NCUA webinar
and series of questions and answers
on the agency's new FOM rule are now
available online.

Factlet

NAFCU Vice President of Regulatory
Compliance Brandy Bruyere covered
the webinar and clarified a number of
key questions and answers in a NAFCU
Compliance Blog post at goo.gl/1oS72O.

$900,000
The minimum anticipated
retirement assets needed by the
average American.
The Bureau of Labor Statistics
suggests that the average adult
age 65 or over will spend
$45,000 annually. With a typical
American lifespan of 84-86
years, that means approximately
20 years of life spent drawing on
retirement funds.
Source: www.ssa.gov

10

For example, NAFCU has received
questions regarding aspects of the community chartering provisions. "The field
of membership rule allows a community
charter to add adjacent areas to a community consisting of a Single Political
Jurisdiction, Core Based Statistical Area
(CBSA), Combined Statistical Area
(CSA), or Rural District by submitting a
narrative, based on subjective evidence,
that the residents interact or share common interests," Bruyere explains. "The
FCU would also need to show its ability
to serve the entire expanded community
through a business and marketing plan."
On the question of whether the rule
allows a credit union serving one
Metropolitan Statistical Area (MSA)
to expand to a separate MSA if it

can demonstrate common interests
- particularly if the MSA is adjacent
to the credit union's existing FOM
- Bruyere says the answer is yes,
assuming both MSAs are part of the
same CSA. "A proposed community
may also include an immediately
adjacent area falling outside of the
CSA. To include the adjacent area, the
credit union must submit a narrative
providing compelling evidence of
interaction or common interest. NCUA
will issue guidance to help credit
unions develop a written narrative."
For many more questions and answers,
visit the NAFCU Compliance Blog at
goo.gl/NafXYc.
Source: nafcu.org
THE NAFCU JOURNAL JULY-AUGUST 2017


http://www.goo.gl/1oS72O http://www.goo.gl/NafXYc http://www.nafcu.org http://www.ssa.gov

Table of Contents for the Digital Edition of The NAFCU Journal July - August 2017

Our First 50 Years
Events Calendar
From the Chair
Inside NAFCU
The Digital Download
How Secure Is Your Credit Union?
The Bank Secrecy Act
2017 Annual NAFCU Award Winners
2016 NAFCU Annual Report
Getting to Know …
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal July - August 2017 - Cover1
The NAFCU Journal July - August 2017 - Cover2
The NAFCU Journal July - August 2017 - 1
The NAFCU Journal July - August 2017 - Our First 50 Years
The NAFCU Journal July - August 2017 - Events Calendar
The NAFCU Journal July - August 2017 - From the Chair
The NAFCU Journal July - August 2017 - 5
The NAFCU Journal July - August 2017 - Inside NAFCU
The NAFCU Journal July - August 2017 - 7
The NAFCU Journal July - August 2017 - 8
The NAFCU Journal July - August 2017 - 9
The NAFCU Journal July - August 2017 - 10
The NAFCU Journal July - August 2017 - 11
The NAFCU Journal July - August 2017 - 12
The NAFCU Journal July - August 2017 - 13
The NAFCU Journal July - August 2017 - The Digital Download
The NAFCU Journal July - August 2017 - 15
The NAFCU Journal July - August 2017 - How Secure Is Your Credit Union?
The NAFCU Journal July - August 2017 - 17
The NAFCU Journal July - August 2017 - 18
The NAFCU Journal July - August 2017 - 19
The NAFCU Journal July - August 2017 - 20
The NAFCU Journal July - August 2017 - 21
The NAFCU Journal July - August 2017 - The Bank Secrecy Act
The NAFCU Journal July - August 2017 - 23
The NAFCU Journal July - August 2017 - 24
The NAFCU Journal July - August 2017 - 25
The NAFCU Journal July - August 2017 - 26
The NAFCU Journal July - August 2017 - 27
The NAFCU Journal July - August 2017 - 28
The NAFCU Journal July - August 2017 - 29
The NAFCU Journal July - August 2017 - 2017 Annual NAFCU Award Winners
The NAFCU Journal July - August 2017 - 31
The NAFCU Journal July - August 2017 - 32
The NAFCU Journal July - August 2017 - 33
The NAFCU Journal July - August 2017 - 34
The NAFCU Journal July - August 2017 - 35
The NAFCU Journal July - August 2017 - 36
The NAFCU Journal July - August 2017 - 2016 NAFCU Annual Report
The NAFCU Journal July - August 2017 - 38
The NAFCU Journal July - August 2017 - 39
The NAFCU Journal July - August 2017 - 40
The NAFCU Journal July - August 2017 - 41
The NAFCU Journal July - August 2017 - 42
The NAFCU Journal July - August 2017 - 43
The NAFCU Journal July - August 2017 - 44
The NAFCU Journal July - August 2017 - 45
The NAFCU Journal July - August 2017 - 46
The NAFCU Journal July - August 2017 - 47
The NAFCU Journal July - August 2017 - Getting to Know …
The NAFCU Journal July - August 2017 - 49
The NAFCU Journal July - August 2017 - Management Insight
The NAFCU Journal July - August 2017 - 51
The NAFCU Journal July - August 2017 - Compliance Central
The NAFCU Journal July - August 2017 - 53
The NAFCU Journal July - August 2017 - Inside NAFCU Services
The NAFCU Journal July - August 2017 - 55
The NAFCU Journal July - August 2017 - From the President’s Desk
The NAFCU Journal July - August 2017 - Cover3
The NAFCU Journal July - August 2017 - Cover4
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