NCUA Replies to ABA's FOM Lawsuit

The National Credit Union Administration (NCUA) filed a reply brief on August 9 to an American Banker Association (ABA) lawsuit challenging NCUA’s field of membership (FOM) final rule.

NCUA's reply brief reiterated the agency’s claim that it acted within its statutory authority and that its rulemaking was reasonable, and called for the dismissal of ABA’s case.

ABA's lawsuit contended that the final rule expanded credit union fields of membership far beyond the limitations imposed by Congress.

Specifically, ABA challenged the inclusions of combined statistical areas -- which encompass multiple metropolitan statistical areas -- as “local communities”; the ability of credit unions to serve core-based statistical areas without serving the urban core that defines the area; the ability to add “adjacent areas” to existing community fields of membership; and the dramatic expansion of what constitutes a rural district.

With NCUA’s reply, the case is now fully briefed. A decision is expected from Judge Ketanji Jackson in the near future on whether to hold oral arguments.

Read NCUA's reply.