WASHINGTON (5/1/09)--Credit Union National Association (CUNA) President/CEO Dan Mica sent a letter of support Thursday to senators regarding an amendment to a housing bill that would extend the increase in federal share and deposit insurance. The amendment was added to S. 896, “Helping Families Save Their Homes Act of 2009” as the Senate debated the bill yesterday. It would extend for four years the increase in deposit insurance coverage, to $250,000, for the National Credit Union Share Insurance Fund and the Federal Deposit Insurance Corp. Congress enacted the coverage on a temporary basis as part of the Emergency Economic Stabilization Act of 2008, to underscore the safety of funds deposited in the nation’s credit unions and banks. The amendment would help credit unions “continue to help their members weather the financial crisis and maintain member confidence in credit unions,” Mica said. In addition to the insurance coverage, the amendment contains other provisions of key importance to credit unions. It would:
* Increase the National Credit Union Administration’s (NCUA) borrowing authority from Treasury from $100 million to $6 billion, with the ability to borrow as much as $30 billion in exigent circumstances through December 2010; and * Establish a Temporary Corporate Stabilization Fund that would also help NCUA spread out credit unions’ insurance costs over seven years.
CUNA strongly supports each of these provisions, and appreciates the Senate’s timely consideration of the amendment, Mica added. (See related story: CU action urged on NCUSIF provisions)