ICBA urges investigation into NCUA low-income rulemaking

May 28, 2020

ICBA called for an investigation by the Office of the Inspector General into the National Credit Union Administration’s recent actions amending its definition of low-income credit unions without deference to notice-and comment-rulemaking requirements under the Administrative Procedure Act.

The NCUA’s actions “raise the specter of collusion that pose serious doubt as to the agency’s motivations and whether it acted in an improper manner that benefits the nation’s largest credit unions at the expense of the smallest,” ICBA President and CEO Rebeca Romero Rainey wrote.

The NCUA said it will begin counting active-duty military personnel with Army or Fleet Post Office addresses as “low-income” individuals, which will free institutions like Navy Federal and Pentagon Federal from restrictions on member business lending, raising supplemental capital, and accepting deposits from non-members.

Earlier this month, ICBA asked Congress to hold hearings to investigate the NCUA designation and to re-examine the credit union industry’s tax and regulatory subsidies.