WASHINGTON – With no debate, lawmakers gave the NCUSIF some help and breathing room last night.
The House Financial Services Committee approved an amendment by Rep. Paul Kanjorski (D-Pa.) 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.
Although NCUA, CUNA and NAFCU all pushed for increasing the period to eight years officials of the agency and trade associations said they are pleased by the increase.
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The panel also approved an amendment by Rep. Luis Gutierrez (D-Illinois) 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.
The amendments are part of a bill that would make permanent the increase in the amount of deposits covered by NCUSIF and the FDIC to $250,000.The full House could take up the measure as early as next week.
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