The NCUA has submitted its first Office of Minority and Women Inclusion Annual Report to Congress, providing details on Minority Depository Institutions required by the Dodd-Frank Act.
Under section 367 of the law, the NCUA must “establish a program to preserve credit unions designated as minority depository institutions. Prior to the enactment of Section 367 by Congress, NCUA had not established a method to identify these types of in situations,” said the report, released on Friday.
“NCUA recognizes the importance of minority credit unions and the unique challenges they often face in serving their membership fields. As a result, the agency took proactive steps to comply with this new mandate,” the report said.
NCUA Board Chairman Debbie Matz tasked the NCUA’s Director of the Office of Minority and Women Inclusion to develop and administer the Minority Depository Institutions Preservation Program, which preserves and encourages minority depository institutions required by the law.
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The NCUA Board approved the proposed “Minority Depository Institutions Preservation Program Interpretive Ruling and Policy Statement” and a request for comments from credit unions, trade associations, and general public at its open board meeting on July 25. The 60-day comment period ended on Sept. 30.
The NCUA said the program continues to evolve as comments from stakeholders are reviewed.
Thus far, the report released Friday OMWI has tentatively “adopted minority eligibility criteria for federally insured credit unions, established a process that allows credit unions to identify themselves as meeting the minority eligibility criteria and drafted a policy statement for preserving and encouraging minority ownership in the credit union industry,” the report said.
“Currently, program technical assistance and training of minority institutions will be primarily provided by NCUA’s Office of Small Credit Union Initiatives. OMWI will facilitate and ensure that minority depository institutions receive technical assistance, training, educational programs, and mentoring opportunities,” it also said.
As part of the Community Development Revolving Loan Fund established by Congress, the NCUA provided 19 minority credit unions with $94,567.40 in urgent needs grants for 2012. It also provided minority grant awards to 37 credit unions totaling $518,859.93. In addition, one minority credit union received a $300,000 loan and another was given a $10,000 loan.
“The fund makes loans and grants to low-income designated credit unions. Congress established this fund to stimulate economic development in low-income communities. The funds for grants and loans come from congressional appropriations and loan interest and principal repayments,” the report said.
The full text of the report is available online.