WASHINGTON -- The NCUSIF could get more help and breathing room under two amendments scheduled to be considered today by the House Financial Services Committee.
Rep. Paul Kanjorski (D-Pa.) is sponsoring an amendment giving the NCUSIF five years to restore itself to the proper equity ratio if it falls below the congressionally-mandated level of between 1.2% and 1.5%. Currently this must be done within a year.
Rep. Luis Gutierrez (D-Illinois) is sponsoring an amendment to increase the NCUSIF's borrowing authority from $500 million to $6 billion. That amount hasn't been raised since the fund came into existence in 1971.
Lobbyists for CUNA and NAFCU said the changes could ease the strain on the fund and possibly lessen the need for as large a premium increase to pay for the rescue plan for corporate credit unions announced last week by NCUA.
The amendments are part of a bill that would make permanent the federal insurance of all credit union and bank accounts up to $250,000.
