Summary: CDRLF proposal streamlines process
June 29, 2016 -- The loan approval process for federally insured, state-chartered credit unions for the Community Development Revolving Loan Fund (CDRLF) would be streamlined under NCUA’s proposed rule, according to a new summary posted by NASCUS.
Under the proposal (which was made at the board’s June 16 meeting at agency headquarters in Alexandria, Va.), rather than requiring a FISCU to obtain concurrence from its state regulator before the federal agency considers the credit union’s loan application, NCUA proposes to obtain formal state regulator concurrence directly after it has received a loan application.
The CDRLF provides loans, technical assistance grants, and funding for response to community emergencies, to credit unions serving predominantly low-income members. Discretion to allocate the funds is delegated to NCUA’s Office of Small Credit Union Initiatives (OSCUI).
In other areas, the summary points out that NCUA proposes a substantive change related to the current §705.5(b) maximum aggregate loan amount of $300,000 for CDRLF loans. The proposed rule would eliminate the reference to a maximum loan amount because NCUA has discretion to issue loans in any amount it deems appropriate. The agency would publish any future self-imposed loan limits in its Notice of Funding Opportunity.
Comments are due on the proposal to NCUA by Aug. 22. Feedback to NASCUS for consideration for inclusion in the association’s official comment letter is due to NASCUS by Aug. 15.