The National Credit Union Administration (NCUA) announced on May 7 that it will include military personnel in its determination of whether a credit union qualifies for a low-income designation.
Under the new approach, military personnel will now be considered in a similar manner as students attending colleges, universities, vocational or technical schools when the NCUA evaluates a federally insured credit union’s low-income designation.
In other words, all military personnel will be treated as presumptive low-income individuals.
However, not all military personnel are low-income. Are admirals and generals low-income?
Credit unions receiving a low-income designation are exempt from the statutory member business loan cap of 12.25 percent of assets, are authorized to obtain secondary capital, are able to accept deposits from non-members, and are eligible for grants and loans from the Community Development Revolving Loan Fund.
But this pronouncement from this rogue regulator appears to violate the Administrative Procedures Act, as this represents a major change in its rules and regulations.
Read the press release.
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I'm not sure if you are reading this correctly. I believe the military members will still need to meet the income criteria set by MSA. The issue was their addresses were being omitted from consideration entirely because they were APO/FPO.
ReplyDeleteI could also be reading it incorrectly, but wanted to point this out.