SEPTEMBER 2012 NUMBER 9

WWW.NCUA.GOV

HIGHLIGHTS

2 Chairman’s Corner Dual Regulatory System Works Well for Troubled Credit Unions

3 Office of General
Counsel Report
Navigating Multi-
Featured Open-End
Lending

4 Board Perspectives
A “Small” Change
Would Get Big Results
ZzZzZzZ

5 Office Of Consumer
Protection Report
Unclaimed Deposits
Website Draws
Thousands of Hits

6 Office of Minority
and Women
Inclusion Report
Dodd-Frank Act
Requires Regulators
to Develop Diversity
Standards and
Assessments

8 Region I Report Working Together on Fraud

9 Office of General
Counsel Report
Agencies Issue
Higher-Risk
Mortgage Appraisal
Proposed Rule

NCUA ALERTS 1,000 CREDIT UNIONS
TO LOW-INCOME DESIGNATION OPPORTUNITY
Initiative Could Unlock Hundreds of Millions of Dollars
in Needed Capital for Member Businesses

NCUA recently notified more than 1,000

federal credit unions across the country that they are eligible for designation as a low-income credit union (LICU), a move that could significantly increase their ability to make investments in their communities and increase access to resources.

number of existing LICUs, from 1,121 to

2,122, and nearly triple membership in LICUs, from 6. 5 million to 17 million.

The initiative cuts regulatory burdens by implementing a rule to streamline the process for federal credit unions to become LICUs.

If all qualified credit unions elect to participate, NCUA estimates it could unlock between $250 million and $500 million in new business capital in the near term.

“With this initiative, we are cutting regulatory red tape and expanding access to capital for small businesses, which should translate into job creation,” said NCUA Board Chairman Debbie Matz. “Providing small businesses with the money needed to open their doors, create jobs, or expand operations will help our economy.

“We’ve opened a new source of capital and reduced regulation at the same time,” Matz added.

This initiative could nearly double the
The LICU designation offers several
significant benefits to credit unions—and,
therefore, their communities—including: