ARLINGTON, Va.–The $1.9-trillion stimulus package passed by the House and now before the Senate would mean an influx of deposits into credit unions—but it doesn’t mean a premium will need to be charged to replenish the equity ratio of the National Credit Union Share Insurance Fund, according to NAFCU.
As CUToday.info reported here, the American Rescue Plan, if enacted as it stands, would include new stimulus checks worth $1,400 for individuals with the full amounts going to those with incomes of up to $75,000 and married couples earning up to $150,000. The payments would phase out for those making up to $100,000 or $200,000 for couples.
If past behavior around the stimulus payments proves to be a prologue, many members will deposit their checks into savings and checking accounts. And the result of that will be a decrease in the NCUSIF’s equity ratio unless the most recent 1% adjustments made by credit unions shore up the number.
“If the stimulus passes it will lead to more deposits. But we have consistently said it does not change the position of the fund,” said NAFCU EVP and General Counsel Carrie Hunt. “If the fundamentals were an issue, if this were a true safety and soundness issue, then our position would change. But Congress gave NCUA eight years and, in some cases, longer to come up with a plan (to restore the equity ratio). Come up with a plan! The flexibility is there for a reason.”
As CUToday.info reported earlier, at its most recent board meeting NCUA Chairman Todd Harper indicated credit unions should prepare for an insurance premium to be charged. The other two members of the board, however, Rodney Hood and Kyle Hauptman, were less sold on the idea and indicated they don’t at this point support a premium being assessed.
NAFCU Names New VP
Separately, NAFCU has named Marisol Garibay as vice president of communications and media relations.
Prior to joining NAFCU, she served as chief communications officer at the Consumer Financial Protection Bureau, and prior to that as communications director at the Office of Management and Budget, deputy assistant secretary for public affairs at the U.S. Treasury Department, and communications director for the House Financial Services Committee.
“Marisol brings over 15 years of tremendous experience to NAFCU, and we are thrilled to have her leading our communications department and helping craft its strategy to bolster our bold advocacy agenda,” said NAFCU President and CEO Dan Berger. “Her experience working at the regulatory agencies and on Capitol Hill, coupled with her sharp knowledge of the financial services industry, will prove invaluable as NAFCU continues to promote credit unions’ good work before Congress, regulators and the American public.”