NCUA Expected To OK New Set Of FOM Rules

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The NCUA board is expected to approve at its next meeting March 27 new rules allowing federal credit unions to establish tradewide, industrywide or professionwide fields of membership for the first time.

The final rule will be little changed from the proposal issued for public comment and will also establish ATMs and shared branches as full-service operations for the sake of adding select groups in "reasonable proximity" and will broaden community chartering allowances.

The board is also expected to issue for a 60-day comment period amendments easing its member business loan rules, including the exclusion of acquired business loan participation interests from the congressionally mandated MBL cap; and exempting MBL vehicle loans from the 80% loan-to-value requirement, thereby allowing 100% financing.

The board will also review two community charter conversion applications to allow Paragon Federal Credit Union, Washington Township, N.J., to serve 900,000 residents in Bergen County, N.J.; and South Carolina Federal Credit Union, Charleston, S.C., to serve 500,000 residents in Berkeley, Dorchester and Charleston counties.

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