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Credit Union Field of Membership A to Z



# Mastering Field of Membership: Insights from NCUA Expert Rick Mumm


In the dynamic world of credit unions, few aspects are as crucial and complex as Field of Membership (FOM). Whether you're a seasoned credit union professional or new to the industry, grasping the intricacies of FOM can be challenging. That's why we were thrilled to sit down with Rick Mumm, a former NCUA employee with over 34 years of experience, including more than 25 years working in CURE (Credit Union Resources and Expansion) and its predecessor offices.


## The Evolving Landscape of Field of Membership


Rick took us on a journey through the evolution of FOM, from the days when a "large community" was defined as 50,000 people to today's landscape where there's essentially no population limit for community charters. His unique perspective, having "grown up" with FOM since the early 90s, provides invaluable insights for credit unions tackling these challenges.


### Key FOM Types and Considerations


1. **Trade, Industry, and Profession (TIP) Credit Unions**: While these specialized FOMs offer unique opportunities, Rick highlighted the challenges in defining and approving TIPs. He noted, "There gets to be a lot of legal nuances on how to define a trade industry or profession." This complexity often leads to lengthy approval processes.


2. **Underserved Areas**: This has become a popular FOM addition, particularly for multiple common bond credit unions. Rick explained the distinction between underserved areas and low-income designations, a crucial differentiation for credit unions considering expansion.


3. **Low-Income Designations**: Rick shed light on the NCUA designation process and the benefits it brings, including no limit on business loans, more non-member deposits, and access to grants and loans. He also highlighted the opportunity for secondary capital, a significant advantage for qualifying credit unions.


## Mergers and Bylaws: Unraveling the Complexities


Rick's expertise extends beyond just FOM types. He provided insights into the merger process, emphasizing the importance of field of membership compatibility. For credit unions considering mergers, understanding these nuances can save time and streamline the process.


On the topic of bylaws, Rick's involvement in writing the 2020 version of NCUA bylaws gives him a unique perspective. He stressed the importance of understanding what constitutes a meaningful bylaw change versus a "substance change" that's unlikely to be approved.


## The Mumm Advantage: Experience from Both Sides


What sets Rick apart in his consulting work is his experience on both sides of the table. As he put it, "Nobody else has worked for NCUA or in a capacity of processing actual packages, seeing them when they come in and they're lousy, and you have to clean it up to make it acceptable."


This insider knowledge allows Rick to help credit unions create efficient, approvable packages. He knows what CURE is looking for and can guide credit unions to avoid common pitfalls that could delay approval.


## Looking Ahead


As the credit union landscape continues to evolve, understanding and effectively managing FOM will remain crucial for growth and success. Whether you're considering a merger, looking to expand into underserved areas, or simply wanting to ensure your bylaws are up to date, expert guidance can make all the difference.


Rick Mumm's wealth of experience offers credit unions a valuable resource in tackling these complex issues. As he aptly put it, "I know what a clean package looks like, won't need a whole lot of cleaning up or changes for it to be approved."


For credit unions looking to optimize their FOM strategy or handle NCUA regulations, reaching out to experts like Rick could be the key to swift approvals and expanding your reach.


*If you're interested in learning more or seeking Rick's expertise, you can reach him at info@rcuservices.com.*

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