As bankers continue to push attacks on the NCUA in an effort to stifle competition, NAFCU remains steadfast in its support of NCUA efforts to ensure military members are properly accounted for when determining a low-income credit union (LICU) designation.
Last week, the Independent Community Bankers of America (ICBA) sent a letter to NCUA’s inspector general challenging the legality of NCUA’s new approach to consider military personnel “in a similar manner as students attending colleges, universities, vocational or technical schools” when determining LICU designations.
The NCUA adjusted its methodology to be more inclusive of military members. The agency explained that its previous methodology for its income assessment tool only geocoded the incomes of members with a physical street address, which left many service members who use PO boxes out of the evaluation.
In a new Letter to Credit Unions, the NCUA further detailed the reasoning behind the new approach and what it means for credit unions.
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