Faced with a significant drop in investment income from its Community Investment Fund, the National Credit Union Foundation has found another investment partner. Starting immediately, credit unions wishing to invest in the CIF are able to do so with a deposit with the National Cooperative Bank, FSB, a subsidiary of the National Consumer Cooperative Bank, while the relationship with the corporate credit unions will continue.
In the announcement, the NCUF painted a dire picture of its investments with corporate credit unions.
"Over the past two years, the value of all CIF investments has declined to approximately $250 million, down from a peak of $370 million," the NCUF explained. "During these past two years there have been a significant number of investments withdrawn for a variety of reasons. Several large certificates were withdrawn even though they carried a penalty and a stated rate of over 5%. Several withdrawals occurred because the investment return had dropped significantly. And unfortunately, some credit unions have withdrawn their CIF investments because they do not want to invest in corporate credit unions."
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