Responsible Debt Relief algorithm creator Dr. Robert Manning told the Credit Union Times he's been working with the agency to create an opinion letter regarding the program so credit unions can implement it.

The algorithm is a better indicator of risk than credit score in a bust market, he said, because it tests a household's shock exposure to rising debt payments or lowered income, similar to the way financial managers shock test portfolios for interest rate risk.

Manning was a keynote speaker at NCUA Vice Chairman Rodney Hood's Risk Mitigation Summit last month in Atlanta, and agency communication confirmed that Hood has indeed requested an opinion letter on the subject.

Cherie Umbel, NCUA spokeswoman, said, "Vice Chairman Hood is a proponent of proactive credit union lending and he strongly supports effective enterprise risk management programs."

She added that the vice chairman encourages eligible credit unions to "take part and test the validity of Dr. Manning's algorithm pilot program", which will be implemented later this year by the California and Nevada credit union leagues.

Manning's algorithm is also under consideration by major credit card issuers. He said he was recently invited to present his program at a "recovery roundtable" event next month in Orlando, called by the nation's top 20 banks.