October 18, 2012
More than 1,000 credit unions nationwide—including 18 in Oregon and Washington—received letters from the National Credit Union Administration (NCUA) stating that, based on 2010 Census data, they are eligible to become Low-Income Credit Unions (LICUs). The agency also rolled out a simplified opt-in process, requesting only a simple reply agreeing to the LICU designation where extensive paperwork had previously been required.
On Sept. 12, the NCUA reported that 553 credit unions had accepted the designation, and the remaining credit unions were given 30 days to respond.
At an open board meeting this morning, the first conducted by the agency since the departure of board member Gigi Hyland on Oct. 5, Chairman Debbie Matz and board member Michael Fryzel approved a proposal to extend LICU designation response time to 90 days, giving the 327 remaining credit unions that have not responded an additional 60 days to file.
The board action came after the agency issued a press release stating that two-thirds of the 676 credit union that have accepted the low-income designation have done so in the past two months. Fourteen of the 18 newly eligible credit unions in Oregon and Washington are among them:
- Amicus Federal Credit Union
- CALCOE Federal Credit Union
- CWU Federal Credit Union
- EWEB Employees Federal Credit Union
- IBEW/SJ Cascade Federal Credit Union
- Laneco Federal Credit Union
- McKenzie Valley Federal Credit Union
- Monad Federal Credit Union
- Northwest Baptist Federal Credit Union
- Oregon Employees Federal Credit Union
- OSU Federal Credit Union
- Pacific Cascade Credit Union
- Sears Spokane Employees’ Federal Credit Union
- Teamsters Council 37 Federal Credit Union
Serving 103,000 members with combined assets of $1.036 billion, Northwest credit unions make up a fraction of newly designated LICUs nationally that serve 7.7 million members and manage more than $66 billion in assets.
The total number of low-income designated credit unions is now 1,874.
To qualify as a LICU, a majority of a credit union’s membership must meet low-income thresholds based on 2010 Census data. The low-income designation means a credit union:
- Is eligible for the Community Development Revolving Loan Fund’s grants and low-interest loans;
- Can obtain supplemental capital;
- Is exempt from the 12.25 percent statutory cap on member business loans; and
- Can accept non-member deposits from any source.
Questions? Contact Director of Regulatory Advocacy John Trull: 503.350.2209, email@example.com.