NCUA Does What It Can; The Rest Is Up To Us
NCUA has taken steps becoming all too familiar to credit unions in recent years: yesterday afternoon it activated its emergency response policy. This policy, among other things, encourages credit unions to make prudent loans with special terms and reduced documentation to affected members. In addition, NCUA is ready to:
- Reschedule routine examinations of affected credit unions, if necessary;
- Guarantee lines of credit for credit unions through the NCUSIF; and
- Make loans to meet the liquidity needs of member credit unions through the Central Liquidity Facility.
A second step taken by NCUA yesterday was to remind low-income credit unions that they are eligible to apply for emergency assistance grants of up to $7,500 to aid in needed repairs in the aftermath of disasters. Given the devastation on Long Island and New York City, I’m sure there are credit unions that would be eligible for the funds and could use the assistance.