Removing Barriers Blog

Comment Letter to NCUA on CLF - Related Bridge Loans
Posted June 11,2015 by CUNA Advocacy

Today we filed a comment letter with NCUA supporting the agency’s second corporate credit union proposed rule.  The proposed rule would remove CLF-related bridge loans made to a natural-person credit unions that have been approved for a CLF-related bridge loan but have not yet received that funding from a corporate credit union’s lending cap.  The proposal would also remove CLF-related bridge loans from the calculation of “net assets” and “net risk-weighted assets” for determining minimum capital requirements.

This amendment should make CLF-related bridge loans more useful without adding any additional risk to corporate credit unions or the credit union system. The loans make it easier for credit unions to use the CLF by providing them with an immediate source of funds while awaiting funding of a CLF loan.