Community development credit unions and other low income credit unions that are allowed to use secondary capital may find a streamlined approach to getting some of that capital in the coming weeks.
The National Federation of Community Development Credit Unions has launched a streamlined process through which their members-and other low income credit unions who join the Federation – would be able to obtain additional supplementary capital to help the weather the impact of increased share insurance assessments brought by the NCUA.
In addition to already being recognized as eligible to use secondary capital by NCUA, credit unions would need to have net asset ratio of greater than 6.5%, have a return on assets of more than 0%, have a delinquency ratio of more than 6.25% and a loan to asset ratio of more than 50%.
Credit unions must also provide January and February results along with a 3-year Financial Projection, their most recent delinquency report, most recent business plan and have at least 3 years of lending experience.
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