DENVER — The NCUA is attempting to expand its opt-in process to low income credit union designation approvalthis month by working with state regulators to identify eligiblestate-chartered credit unions, NCUA Chairman Debbie Matz announcedWednesday during her keynote session at the 2012 NASCUS Summit inDenver.

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Matz said the NCUA will meet with NASCUS President/CEO Mary Martha Fortney to brainstorm ways to initiate an LICUopt-in approval process similar to the one NCUA launched forfederal credit unions last month.

The program was part of an administration drought relief packageand would make more credit unions eligible to waive the 12.25% capon member business lending.

The NCUA would like to be able to verify eligiblestate-chartered credit unions every quarter, after state regulatorsprovide NCUA with appropriate member income data. The agency wouldthen notify state regulators which credit unions are eligible;state regulators would complete the LICU eligibility designationprocess.

Fortney told Credit Union Times the program is still inthe very early stages, and will be subject to each state'slow-income program rules. Some states don't have low-incomedesignations, she added.

Rather than that ask federally chartered credit unions tocomplete a full application and approval process, the NCUA sent aletter to 1,000-some credit unions, notifying the of their LICUeligibility, and offering them the chance to gain LICU designationby simply replying to the letter.

To date, Matz said 553 credit unions have responded and acceptedthe LICU designation. The NCUA will send a second letter toeligible federal credit unions this week, because some creditunions have said they didn't receive the letter, or haven't yet hada chance to meet with their boards to accept the offer.