Be Careful What You Wish For

The banking industry, as well as this blogger, has commented that the National Credit Union Administration (NCUA) should allow public comments regarding a community charter application before the agency makes a decision on the application.

Speaking at the Credit Union National Association (CUNA) Governmental Affairs Conference on February 28, Acting NCUA Chairman McWatters appears to have partially granted the banking industry's wish. Acting Chairman McWatters stated:

"The final field-of-membership rule should also afford enhanced due process rights for those that wish to register public comment regarding certain proposed community-based field-of-membership applications prior to definitive action by the agency."

Clearly, permitting public comments on certain community charter applications will be a burr under the saddle for the credit union industry.

But this is a smart move on the part of NCUA to seek comment on community charter applications.

By requiring comment, the ball will now be in the court of bankers and bank trade associations.

If bankers and bank trade associations fail to comment on certain proposed community charters, it will probably make it more difficult for the banking industry to do an as applied challenges to NCUA's community charter decisions in the courts.