(Nov. 12, 2021) A final rule on field of membership (FOM) shared facility requirements will be at least one of the items on the Nov. 18 NCUA Board meeting agenda, released this week.
The board will also receive three board briefings from staff – including one on the agency’s modernized examination tools – and consider the agency’s 2022-26 strategic plan
The board meeting is scheduled to begin at 10 a.m. Thursday at NCUA headquarters in Alexandria, Va.; it will be live-streamed via the Internet.
The final rule, as proposed nearly a year ago (in December 2020), would “modernize” requirements related to service facilities for multiple-common-bond federal credit unions (FCUs).
The proposal – which modifies Part 701, Appendix B, of NCUA regulations — would, the agency said, include any shared branch, shared ATM, or shared electronic facility in the definition of “service facility” for a multiple-common-bond FCU that participates in a shared branching network.“
According to NCUA, the FCU need not be an owner of the shared branch network for the shared branch or shared ATM to be a service facility. “These changes would apply to the definition of service facility both for additions of select groups to MCB FCUs and for expansions into underserved areas.”
The proposal was issued for comment on a 2-1 vote, with now-Board Chairman Todd Harper dissenting. Harper said he questioned the proposal’s ability, without changes, to increase service to underserved areas.
The shared service proposal is one of two outstanding proposals the board agreed in September to consider in upcoming meetings in November and December. Next month, the board will consider a proposal on mortgage servicing rights, which Harper also opposed.
The future of unanimous approval for both the FOM and mortgage servicing proposals may be a bit brighter, however: Harper said at last month’s NCUA Board meeting that he hoped to be able to support both in the upcoming votes.
Regarding the modernized exam tools: the agency is rolling out new implements for evaluating credit unions. Those include the agency’s Modern Examination & Risk Identification Tool, (MERIT), as well as associated programs: the Data Exchange Application (DEXA), NCUA Connect, and the Admin Portal.
The other two briefing will be a quarterly report on the National Credit Union Share Insurance Fund (NCUSIF) and an update on the agency’s response to the COVID-19 pandemic.