New NCUA Low-Income Designation Violates Law: ICBA

A new NCUA policy on counting servicemembers in determining whether a credit union is” low-income” is an illegal expansion of the limits Congress has placed on the institutions, the Independent Community Bankers of America charged Thursday.

“The NCUA’s changes–made without a formal rule subject to public review and comment–is another example of this captive regulator expanding the powers of credit unions well beyond the limits established by Congress to justify their tax exemption,” ICBA President/CEO Rebeca Romero Rainey said.

Postal Banking Returns

Postal banking is back.

As policymakers battle over how to deal with the mounting losses facing the United States Postal Service, supporters of a plan to allow post offices to provide basic financial services are renewing their arguments that postal banking could help save the system.

Will Trump Replace McWatters?

With the pandemic crisis taking up so much time and energy, it is understandable that people may forget about the everyday nuts and bolts of government.

Consider, for example, the NCUA board. The term of board member J. Mark McWatters expired in August. Sources in the credit union community said they have not heard any discussion of replacing him.

Harper: Don’t Change CU Capital Standards

Clashing with NCUA Chairman Rodney Hood, board member Todd Harper is asking Congress not to reduce credit union capital standards in response to the coronavirus crisis.

“Reductions in capital standards could ultimately lead to greater losses for the Share Insurance Fund, which all surviving federally insured credit unions would need to pay,” Harper wrote to leaders of the House and Senate committees with NCUA oversight powers.

CUNA Pushing for $1 Billion Boost for CDFIs

A coalition of supporters of the Community Development Financial Institutions program has asked Congress to set aside $1 billion for the program in the next coronavirus economic relief measure.

In a letter to congressional leaders, the groups, including CUNA, contend that federal financial relief funding is not reaching small businesses and families that are not served by mainstream lending institutions. CUNA noted that there are 324 CDFI-certified credit unions across the country.