ALEXANDRIA, Va. - The NCUA at its monthly board meeting yesterday, approved a final rule to change its regulation that governs the application process for loans and technical assistance grants from the Community Development Revolving Loan Fund (CDRLF). The changes are intended to increase transparency and improve the CDRLF's organization, structure, and ease of use by credit unions.
The final rule includes several changes from the proposed version, which CUNA generally supported, but does add some new reporting requirements. However, in light of concerns that CUNA raised about proposed financial projection requirements for the loan application, the agency removed these requirements from the final rule.
The agency will no longer require community needs plans to be filed with CDRLF applications and will increase the maximum amount of a single loan to more than $300,000 in some circumstances. The NCUA will also offer flexible repayment options for CDRLF loans and may offer lower interest rates in some cases.
NCUA staff also reported on the state of the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF's equity ratio was at 1.31% as of September 30, 2011, said NCUA staff and its reserves stand at approximately $1.0 billion, which includes $22.5 million in reserves for specific credit unions and $976 million in non-specific reserves.
A summary of the board meeting is available on the League Web site: www.njcul.org/ncua-board-meeting-summaries.aspx. This aspect of the site is limited to members only and requires a login. To register for a login, visit www.njcul.org/Secure/Register.aspx.