NAFCU President Fred Becker today asked the Senate Banking Committee to take "immediate action" on NCUA's proposal to create a stabilization fund for corporate credit unions but suggested changes to the plan, including expanding the repayment period.
In a letter to Committee Chairman Christopher Dodd and Ranking Republican Richard Shelby, Becker said the fund would spread out the costs incurred by credit unions to pay for the NCUA's program for stabilizing corporate credit unions. But NAFCU wants the repayment period increased to eight years, from NCUA's request of seven years.
Becker said the change would give credit unions additional money to "allow them to provide nearly $40 billion in consumer and small business loans to help the economy recover from the current economic downturn."
NAFCU is also requesting that lawmakers give the NCUA $10 billion in borrowing authority, up from the agency's request of $6 billion (which has already passed the House). NAFCU is also asking that Congress give the Central Liquidity Facility the power to make direct loans to all credit unions. The NCUA has so far declined to request that.
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