House committee approves FOM, third-party vendor bills

by David Baumann, CUCollaborate

The House Financial Services Committee on Wednesday approved legislation that would allow all credit unions to expand their field of membership (FOM) to include underserved areas.

The panel voted, 27–22 to approve H.R. 7003, a bill sponsored by committee Chairwoman Rep. Maxine Waters, D-Calif. The bill also would exempt business loans by credit unions in underserved areas from the credit union member business lending cap.

In addition, it would expand the definition of an underserved area to include New Markets Tax Credit areas as well as any area that is more than ten miles from the nearest financial institution branch.

All of the members voting in favor of the bill were Democrats; all members voting in opposition were Republicans.

 

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