December 22, 2008
Notice to Credit Unions Regarding CU HARP and CU SIP
The Department of Financial Institutions has received a number of inquiries regarding state-licensed credit unions participation in two lending programs recently initiated by the National Credit Union Administration ("NCUA"). The two initiatives are: the Credit Union System Investment Program (commonly referred to as "CU SIP); and, the Credit Union Homeowners Affordability Relief Program (commonly referred to as "CU HARP"). The CU SIP program is designed to provide liquidity for the corporate credit union system. The CU HARP is a two-year, $2 billion program intended to assist homeowners who are facing delinquency, default, or foreclosure on their mortgages, especially in the face of diminished home prices. In implementing the CU HARP, both the NCUA and the CLF require assistance from the relevant state credit union regulator in verifying that state-chartered credit unions participating in the CU HARP are complying with the terms and conditions of CU HARP. To that end, the Department of Financial Institutions will execute an agreement with the NCUA assuring its cooperation in monitoring the compliance of California state-chartered credit unions that participate in CU HARP with the requirements of that program.
While California state-chartered credit unions do not need to obtain approval from the Department to participate in either CU SIP or CU HARP, the credit unions must notify the Commissioner if they participate in one or both of the programs.
We appreciate your cooperation in this matter.
If you have any questions for the DFI regarding the application process, please contact RaAnn Wood, Deputy Commissioner, Credit Union Division, at 213-897-2155, or at email@example.com.