Underserved Area Expansions

In an effort to encourage credit unions to expand service to underserved areas, the NCUA Board has approved more flexible policies to make expansion into underserved areas less burdensome. There are numerous benefits to be gained by expansion into underserved areas, such as diversification of membership and increased lending opportunities. The attached appendix provides more guidance about expanding into underserved areas.

IRPS 99-1, as amended by IRPS 00-1, permits any federal credit union to include an underserved area in its field of membership regardless of size, location, or charter type. In addition, the Credit Union Membership Access Act (CUMAA) expanded the ability of credit unions to bring credit union service to underserved areas by expanding the definition of underserved area and allowing credit unions to add underserved areas to their field of membership.

The addition of an underserved area to a credit union’s field of membership does not change the basic nature of the credit union’s charter. For example, if a multiple common bond credit union adds an underserved area, it would still remain a multiple common bond credit union.

If you require additional information, I encourage you to contact your regional office.