NCUA, Treasury Agree To Changes In CDCI Standards

NEW YORK-NCUA and the Department of Treasury have agreed to modify viability standards for credit unions applying to the Community Development Capital Initiative following a request by the National Federation of Community Development CUs. The agency has informed the Federation that it has "adjusted its evaluation criteria with respect to non performing loans... [and the] new formula will give greater weight to LICU's cushion against delinquencies even in worst-case scenarios... Preliminary review of the latest data indicates that by using NCUA's new formula, additional LICUs will qualify for CDCI without matching funds." The CDCI program allows low-income CUs certified as CDFIs to obtain up to 3.5% of their assets as secondary capital, which counts toward their regulatory net worth. Eligibility for the CDCI program is determined by NCUA in conjunction with Treasury. For info: www.natfed.org.