WASHINGTON (5/6/09)--The Credit Union National Association (CUNA) this week praised a proposed rule change that would allow credit unions to remove investments in CU SIP or CU HARP from their total operating fee calculations. The Credit Union System Investment Program (CU SIP) and the Credit Union Homeowners Affordability Relief Program (CU HARP) were created by the National Credit Union Administration (NCUA) to prop up the corporate credit union system. Under CU SIP, credit unions may invest funds that are borrowed from a Central Liquidity Facility (CLF) in corporate credit union. CU HARP allows credit unions to invest money borrowed from the CLF in two-year guaranteed CU HARP notes that are issued by corporate credit unions. These funds may then be used to modify at-risk mortgages. Although NCUA continues to encourage credit union participation in these programs, the agency has said that increased operating fees could prevent some credit unions from participating. In a comment letter posted Monday, CUNA said that removing these investments from operating fee calculations would “facilitate participation in the [CU SIP and CU HARP] programs by removing the disincentive related to the calculation of the operating fee.” CUNA asked for individual credit unions to provide their comments on the proposal in a March 25 comment call. To read more about CUNA’s comment letter, use the resource link below.