NCUA Media Advisory

NCUA Issues Low Income and Community Development Credit Union Guidance

January 15, 2010, Alexandria, Va. --The National Credit Union Administration (NCUA) today issued Letter to Credit Unions 10-CU-01-- Supervising Low Income Credit Unions and Community Development Credit Unions. The Letter, which was provided to NCUA examination staff and shared with the boards of directors of all federally insured credit unions, provides guidance on the characteristics, benefits, and unique challenges of low income credit unions and community development credit unions.

"NCUA is very aware of the distinct qualities inherent in credit unions that primarily serve consumers in low and moderate-income areas.  The challenges these credit unions face are real but by no means insurmountable, and I am confident that this new guidance will enhance both the quality of NCUA supervision, and the credit union's ability to serve those consumers who need affordable financial services the most," commented NCUA Chairman Debbie Matz. "This is a reasoned, flexible and sensible regulatory approach, and it can have a real and positive impact in distressed communities."

The Letter is accompanied by an appendix listing resources available to credit unions with low-income designations, and those credit unions that are self-designated community development credit unions.  It also highlights additional sources of funding available, including Community Development Revolving Loan Fund access, Treasury Department-Administered Community Development Financial Institution grants, as well as non-member deposit and secondary capital funds. 

The Letter can be accessed online at http://www.ncua.gov/Resources/LettersCreditUnion2010.aspx.

The National Credit Union Administration is the independent federal agency that regulates charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of over 90 million account holders in all federal credit unions and the majority of state-chartered credit unions.

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