NCUA Chairman Rodney Hood announced Thursday that military personnel will now be able to count toward a credit union earning the Low-Income Credit Union (LICU) designation. CUNA requested this change in its engagement with NCUA, most recently in a letter sent to Hood in March.
The LICU designation means low-income members comprise more than 50% of a federal credit union’s membership, and entitles the credit union to certain statutory benefits, including being able to accept non-member deposits from any source, offering secondary capital accounts, member business lending exemptions and the ability to apply for grants and low-interest loans from NCUA.
“We want to thank Chairman Hood because his action will allow more credit unions to leverage the LICU designation to serve low- and moderate-income individuals and communities, which is especially critical as financial first responders work diligently to serve members during the pandemic,” said Nussle. “Chairman Hood’s action will help more credit unions to qualify as low-income credit unions, extending to many military members living on bases the greater financial opportunities and expanded products afforded by this designation.”
In addition to CUNA, several leagues and other policymakers have endorsed this action. For example, NCUA board member Todd Harper has also called for such a change, most recently during his remarks at this year’s CUNA Governmental Affairs Conference.
This change comes after a CUNA President/CEO Jim Nussle wrote to Chairman Hood in March, asking for the agency to consider such a policy.