The NCUA will provide state regulators with a list of low-income eligible credit unions through a cooperative effort between the NCUA and NASCUS, an initiative first announced in September.
The list will add state-chartered credit unions to the NCUA’s fast-track LICU approval program for federal charters that eliminated a time-consuming application process and increased the number of LICU credit unions to nearly one-third of the industry.
The agreement announced Wednesday irons out the details of state regulators providing the NCUA with member income data, including modifications the NCUA made to its AIRES system so states can simply include income information when they upload exam results.
The NCUA said it will now create a quarterly list of eligible credit unions for each participating state regulator, who has LICU approval authority.
“Consistency and cooperation are fundamental to effective regulation, and so is creating opportunities,” NCUA Board Chairman Debbie Matz said. “This is a great example of how state and federal regulators can work together to help state-chartered credit unions that qualify obtain a low-income designation. NCUA will provide state regulators with lists of credit unions that could qualify, and the states take it from there.”
Benefits of LICU designation include the ability to access supplemental capital, eligibility for CDFI grants and a waiving of the cap on member business lending.