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Guidelines for Review of Requests From Federal Corporate Credit Unions for National
Fields of Membership (FOM)
OFFICE OF CORPORATE CREDIT UNIONS (OCCU)
The NCUA Board will consider, on a case by case basis, requests submitted by federal
corporate credit unions for national fields of membership. Each case will be considered
on its individual merits. However, at a minimum, the following documentation and
information must be provided to, and reviewed by, OCCU before presenting the requests
to the NCUA Board:
- Statement of intent. The corporate must indicate the reason for the request
and provide a copy of the board of directors' resolution.
- Business plan / marketing strategy. The corporate will address its current
operational condition and identify the impact the national FOM will have on present
operations. Analysis as to the services the corporate proposes to offer to the targeted
credit unions is to be provided through an acceptable business plan and marketing
strategy.
- Infrastructure/staff analysis. Documentation reflecting management's review
of existing infrastructure and staff to handle the projected additional workload.
If additional infrastructure or staff are needed, a plan and time line for acquiring
them should also be provided.
- Financial projections. The corporate will submit copies of its current
financial statements and copies of all analysis as to income, expense, and share
growth projections related to servicing the projected additional membership. The
projections will include additional infrastructure/staff expense, if applicable.
This listing should not be considered as all inclusive. The corporate should submit
any other relevant information that will support the request. Additionally, OCCU
may ask for additional information after reviewing the initial documents submitted.
Once OCCU has ascertained that all necessary information has been provided, staff
will review the documentation and other information to determine the following:
- Reasonableness of the plans and projections. A review will be performed
to determine that plans and projections are formulated to address the ongoing safety
and soundness of the corporate, and the reasonableness of the marketing strategy
plans to accomplish the stated goals of the Statement of Intent. OCCU may recommend
a corporate seek a mult-state or regional FOM if its marketing strategy only targets
a specific geographic area.
- Financial impact. OCCU will review the financial projections provided
by the corporate, as well as other sources of relevant financial data. The review
will ascertain any potential negative impact on the corporate's financial condition
and operating rations which could threaten its safety and soundness.
- Regulatory history. OCCU will review the requesting corporate's most recent
examination report, regulatory rating, and any supervisory information to determine
that there are no issues of concern outstanding that could have a negative impact
on the proposed FOM expansion.