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NAFCU calls on Congress to heed request from NCUA, make CLF enhancements permanent
NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter to both the House and Senate Thursday to voice support for the NCUA Board’s letter calling for enhancements to the Central Liquidity Facility (CLF) made by the CARES Act to be made permanent and highlighting how credit unions have stepped up to help their communities.
All three members of the NCUA Board joined on the letter to Congress sent Monday, noting the enhancements “provide the NCUA with a vital tool to ensure continued liquidity of the credit union system as it responds to the COVID-19 pandemic and beyond.”
Thaler reiterated the four important changes made to the CLF that should be made permanent:
- increasing the CLF’s maximum legal borrowing authority;
- permitting temporary access for corporate credit unions to borrow for their own needs;
- providing more flexibility and affordability for members to join and serve smaller groups of their covered institutions than their entire memberships; and
- providing the NCUA Board with more clarity and flexibility on the loans it can approve.
“We urge Congress to act to prevent the expiration of these provisions and continue providing credit unions with this important liquidity tool,” concluded Thaler.
Read Thaler’s full letter. The association will continue to work with the NCUA and Congress to ensure credit unions have the tools needed to provide support for their members.