The NCUA will provide state regulators with a list of low-incomeeligible credit unions through a cooperative effort between theNCUA and NASCUS, an initiative first announced in September.
|The list will add state-chartered credit unions to the NCUA'sfast-track LICU approval program for federal charters thateliminated a time-consuming application process and increased the number of LICU credit unions to nearly one-thirdof the industry.
|The agreement announced Wednesday irons out the details of stateregulators providing the NCUA with member income data, includingmodifications the NCUA made to its AIRES system so states cansimply include income information when they upload examresults.
|The NCUA said it will now create a quarterly list of eligiblecredit unions for each participating state regulator, who has LICUapproval authority.
|“Consistency and cooperation are fundamental to effectiveregulation, and so is creating opportunities,” NCUA Board ChairmanDebbie Matz said. “This is a great example of how state and federalregulators can work together to help state-chartered credit unionsthat qualify obtain a low-income designation. NCUA will providestate regulators with lists of credit unions that could qualify,and the states take it from there.”
|Benefits of LICU designation include the ability to accesssupplemental capital, eligibility for CDFI grants and a waiving ofthe cap on member business lending.
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