1,000 CUs Eligible for Low-Income Designation Posted by AVCU on 2:39 PM

At a meeting of League Presidents in Chicago last week, NCUA chair Debbie Matz indicated the federal regulator would soon send letters to nearly 1,000 credit unions indicating they are eligible for low-income designation. That status brings benefits such as the ability to accept supplemental capital and an exemption from the small business lending cap under certain circumstances. According to Matz, almost 1,000 credit unions meet the LICU designation but don't have it. Matz said she realizes some perceive a stigma to a low-income designation, but hope they will get over that. Matz said a letter to these eligible credit unions would likely go out within the next few days.


Matz also told league presidents that NCUA plans to "improve the regulatory environment" based on input received from her recent series of "listening sessions" with credit unions around the U.S., including plans to expand the regulatory definition of small credit union beyond the current $10 million asset level, a change CUNA has long advocated through its Small Credit Union Committee. Matz added interest in such an expansion is shared by NCUA Board Member Gigi Hyland, who also addressed the AACUL meeting.
Other changes the agency is considering include removing the personal guarantee requirement on MBLs, expanding the definition of rural field of membership to make it more flexible, allowing CUs to hold Treasury Inflation Protected Securities, and liberalizing rules to encourage more CUs to offer low cost payday loan alternatives.