WASHINGTON—CUNA, Inclusiv, the National Association of Latino Credit Unions and Professionals, state leagues, and a number of credit unions have all come together to offer suggestions on how NCUA can best support Minority Depository Institution (MDI) credit unions.
The feedback follows revisions proposed by the NCUA board at its June meeting on its interpretive ruling and policy statement on the MDI program.
“Given the crucial role MDI credit unions play in their communities, we are encouraged by the NCUA’s increased and vocal commitment to supporting and preserving MDI credit unions,” the organizations stated in a joint letter. “As the NCUA builds on its efforts to date, the agency should increase its support for MDI credit unions by deepening its engagement with MDI credit unions and the organizations that support them, improving the accessibility and usefulness of its key MDI programming efforts, and continuing to improve the examination process and compliance support for MDIs.
“In addition, the NCUA should play an active role in promoting MDI credit unions and ensuring they have the opportunity to participate fully in and on equal footing with MDI banks in both federal and private initiatives designed to support MDI,” the letter continues.
The Suggestions
The organizations noted NCUA’s support for MDI credit unions is “key to their growth and success,” and encouraged the agency to:
- Deepen engagement with MDIs
- Make technical assistance and Make Community Development Revolving Loan Fund grants more accessible
- Provide additional technical assistance to MDIs seeking to expand their fields of membership and access to tools that allow credit unions to easily determine if an underserved area passes the concentration of facilities test
- Ensure MDI credit unions Have opportunities to participate fully in federal and private MDI programming
Improved Exam Process
The organizations also said the new MDI exam procedures have notably improved exams, and they encouraged NCUA to “ensure that new policy approaches and MDI programming announced by the board consistently reach front-line staff responsible for carrying out the programming.”
Earlier, NAFCU offered its perspective on the same issue here.
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