Credit union CEOs representing CUNA and NAFCU today urged lawmakers to increase the NCUSIF's borrowing authority with the Treasury Department to $100 billion and allow the CLF to lend to corporate credit unions.
These additional powers will give the NCUSIF "the authority it needs to address insurance issues and manage insurance costs," VyStar Credit Union President/CEO Terry West told the Senate Banking Committee's Subcommittee on Financial Institutions on behalf of CUNA.
He urged the panel to encourage the NCUA to spread out the premium being levied on natural person credit unions to pay for the agency's rescue plan for the corporate credit union system. West, whose credit union is in Jacksonville, Fla., also asked for legislation permitting the NCUA to collect credit union premium costs over an eight-year period.
Services Center Federal Credit Union President/CEO David J. Wright said that without the changes to help the NCUSIF, there will be numerous adverse effects on credit unions such increased fees, higher loan rates, lower dividends, and decreased lending.
Wright, who testified on behalf of NAFCU, said the impact on consumer and business lending could total $33 billion which would hurt the economy "as the nation strives to rebound from its economic malaise."
Wright's credit union is located in Yankton, S.D.