Thursday, February 26, 2015

Are Generals and Admirals Low-Income?

Apparently, National Credit Union Administration (NCUA) Board member Rick Metsger thinks so.

In remarks to the Northern Virginia Chapter of the Virginia Credit Union League in January, Mr. Metsger advocated "[a]llowing active-duty military personnel and their families to automatically qualify as low-income households."

However, I seriously doubt admirals and generals qualify for low-income designation. The same could probably be said for many active-duty military personnel.

This is a cynical ploy by NCUA to expand the number of credit unions that have a low-income designation.

This would exempt these credit unions from the member business loan cap of 12.25 percent of assets and would give them access to supplemental capital.

It is obvious that NCUA is trying to use regulatory fiat to do what it cannot get through legislation.

Read the NCUA press release.

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