Scratch a credit union and it's likely to bleed service. But these days, many of them are scratching for alternative sources of liquidity to improve how their members are served.
An NCUA asset securitization proposal allowing qualified credit unions to bundle their loans and sell them on the securities market may provide a necessary transfusion to the movement provided enough credit unions can tap into it.
As it is currently drafted, however, the amendments to parts 721 and 741 of the Federal Credit Union Act that comprise the proposal provide a flow of new capital for only a handful of larger credit unions. As for the rest, access to additional liquidity remains anemic at best, according to some experts.
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