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ALEXANDRIA, Va. — The NCUSIF’s reserve balance was $5.2 billion last month, including an increase of $1.2 billion in losses for the corporate credit unions, NCUA Chief Financial Officer Mary Ann Woodson told the board last Tuesday.The reserve balance includes $13.7 million in reserve balance expense for natural person credit unions. At the end of February, the reserve balance was $3.9 billion.The fund had a $500,000 loss in income last month.That’s less than the $8.2 million loss projected, and the fund has had a net income of $146.4 million so far this year.As of March 31, it had $23.4 billion in assets, compared with $12.0 billion at the end of March 2008.Its equity ratio was 1.3% as of March 31.The NCUA Board also extended its program to guarantee the deposits of credit unions in corporate credit unions to accommodate a two-year rolling expiration date.During its executive session following an open meeting, the board voted to provide the option of quarterly extensions through December 2012.“The action of the NCUA Board sends a clear signal to natural person credit unions that their investments in corporate credit unions are not only safe, but also meet sound asset liability management principals by providing for orderly laddering of these investments. It is important that they continue to provide the liquidity that isneeded to maintain corporate stability,” NCUA Chairman Michael E. Fryzel said ina statement.As part of the corporate stabilization plan announced in January, the NCUA agreed to guarantee all deposits in corporate credit unions through the end of 2010.At the public meeting, the board approved proposed clarifications of some of its previously passed credit card regulations, including allowing credit unions to raise the interest rates on the accounts of returning veterans if they give them 45 days notice.Under federal law, people on active military duty can be charged no more than 6% interest on credit cards. The rate automatically returns to the original rate once the person is no longer on active duty but the rule requires 45-day notice to raise the rate above that.The proposals also state that credit card issuers can continue to offer varied interest and related programs, but the charges cannot be changed through a “hair trigger” or “universal rate” increase.There is a 30-day comment period.The board also voted to give the Office of Small Credit Union Initiatives additional powers to go along with the authority provided last year to be the focal point during the credit union chartering process. The powers include requiring its approval for revoking charters and entering into a Letter of Understanding and Agreement with the credit union.NCUA Vice Chairman Rodney Hood suggested that the office take an inventory of its procedures to determine how the additional workload will impact its ability to perform its responsibility. After that, he requested that the office’s director, Tawana James, meet with the board to discuss if its existing staffing levels are adequate.The board also approved upgrading two positions in the Office of Capital Markets and creating two new positions in the Central Liquidity Facility.J. Owen Cole, director of the office of capital markets and planning, said the changes were necessary in light of the increased and more complicated nature of the workload in those areas because of the problems facing the corporate credit unions. He said he hoped to have the new employees on board before the end of the year. The changes are estimated to cost $296,500.The board also voted not to pay an additional $13,582 to the company that Norlarco Credit Union in Ft. Collins, Colorado was leasing space from at the time NCUA liquidated it in February 2008.The company, Centre Tech III, had requested $13,582 to pay for unamortized costs of refinishing the property and the unamortized balance of a real estate commission. Hattie Ulan, a special counsel to the NCUA General Counsel, said under federal law, the NCUA is only liable for rent due during the period in which the property was occupied.–[email protected]

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