NCUA Approves Final Rule Revising Community Development Revolving Loan Fund Processes
Oct. 27, 2011 - The National Credit Union Administration Board approved final rule Part 705, Community Development Revolving Loan Fund (CDRLF), at its October 2011 meeting.
The final rule includes revisions to the process by which the agency solicits, receives, evaluates and acts on credit union applications seeking loans and technical assistance grants from the CDRLF. The CDRLF was created by Congress in 1979 for loans and technical assistance grants for credit unions serving predominantly low-income members. It also serves as a source of funding to help low-income credit unions respond to emergencies arising in their communities. The CDLRF has more than $17.6 million in assets as of June 30, 2011.
This section of NCUA’s rules had not been updated since 1993 and NCUA staff noted that changes in the economy and other factors prompted this update intended to improve the organization, structure and ease of use by credit unions. To see the final rule, click here. The CDRFL is open to all credit unions with a low-income designation.
The NCUA also provided its monthly insurance fund report. As of Sept. 30, 2011, the National Credit Union Share Insurance Fund (NCUSIF) equity ratio was 1.31 percent. The number of CAMEL 4/5 credit unions increased from 369 in August to 384 in Sept., representing 3.88 percent in assets. CAMEL 3 credit unions represent 16.59 percent of shares as of Sept. 30, 2011 at 1,777 institutions. To date in 2011, 13 credit unions have failed; 28 credit unions failed in 2009 and 2010. To see statistics from this report, click here.