UPDATED: NCUA info collection requests support PCA, low-income measures set amid COVID-19

Two information collections related to the federal credit union regulator’s implementation of some prompt corrective action (PCA) easing due to the COVID-19 pandemic and its change in methodology for determining whether a credit union qualifies for the “low income” designation are out for comment until Sept. 16.

These collections support two actions taken in May. The PCA provision, implemented through an interim final rule, provides credit unions some regulatory capital relief amid the COVID-19 (coronavirus) pandemic. Currently set to expire Dec. 31, it relieves federally insured credit unions (FICUs) of the earnings transfer requirement under PCA when they drop from “well capitalized” to “adequately capitalized” status. It also waives specific content requirements for net worth restoration plans (NWRPs) submitted by FICUs that become undercapitalized predominantly as a result of rapid share growth due to COVID-19.

The low-income methodology change includes all military servicemembers (including those who have Army/Air Post Office [APO] or Fleet Post Office [FPO] mailing addresses) in the low-income designation calculation. The revision, according an NCUA notice in June, expires Nov. 30. That notice states that this change “gave more credit unions access to congressionally appropriated COVID-19 stimulus and loan programs.”

August notice, PCA relief

August notice, low-income designation

June notice, low-income designation