News

April 6, 2009
NCUA Links & FAQs

CCU Stabilization Fund Q&A

March 24, 2009
Fitch Rating

PDF

January 29, 2009
Statement from Jay Murray, President/CEO Mid-Atlantic Corporate

Yesterday the NCUA Board announced approval of a series of actions to enhance and support the corporate credit union network. At the heart of these actions are steps to capitalize losses experienced by US Central FCU. US Central like many in the financial services industry is realizing losses on some of the mortgage and asset-backed securities held in their portfolio. We at Mid-Atlantic support the NCUA’s move to capitalize these losses. As for the other pieces of the plan, NCUA is conducting a conference call with corporate credit unions this morning. We expect to get additional information and details from them at that time. For our own members who may be concerned with Mid-Atlantic’s financial condition, to date Mid-Atlantic has had adequate liquidity to meet all of our members needs. The Corporate has had no OTTI (Other Than Temporary Impairments) and unrealized losses on our books due to the stock market fluctuations total no more than $36 million. Mid-Atlantic Corporate remains committed to continue serving our members as we always have by holding true to our mission and answering our members needs.

December 18, 2008
Mid-Atlantic Corporate’s CU HARP/CU SIP FAQ’s

On Tuesday, Dec. 9, the National Credit Union Administration (NCUA) unveiled two plans to provide additional liquidity options to the credit union system through the Central Liquidity Facility. The Credit Union Homeowner Affordability Relief Program (CU HARP), is a program that permits natural-person credit unions to provide assistance to the members who are at risk for foreclosure on their homes. The Credit Union System Investment Program (SIP) enables creditworthy credit unions to borrow funds from the CLF that would then be invested in corporate credit unions that need additional liquidity.

The following FAQs address some of the common questions our members have about these programs:

My credit union is interested in participating in CU HARP, where can I get more information about the program?

Mid-Atlantic Corporate has posted CU HARP program highlights on our home page under Latest News. You can also get more information from the CLF website by clicking on the CU HARP links.

Why should my credit union consider participating in CU HARP?

CU HARP was designed to give credit unions additional means to help their members avoid default and foreclosure on their homes. The program also helps credit unions avoid future loan losses. This program helps credit unions serve consumers in need, something central to our core mission of people helping people.

How do I know if my credit union is eligible to participate in HARP?

Mid-Atlantic Corporate has received a list of credit unions eligible to participate in HARP. You can contact your Corporate Account Manager to find out if your credit union is eligible.

Is Mid-Atlantic Corporate in need of SIP funds?

No. Mid-Atlantic has none of the external borrowings that the SIP program was designed to address, and has no need for any funds from CLF to pay down debt. Mid-Atlantic Corporate has ample liquidity to serve our members. The Corporate has positioned itself to meet our members liquidity needs by diversifying our lines of credit. While Mid-Atlantic has maintained a line of credit with US Central, we have also diversified lines among several financial institutions. Before the end of the month, Mid-Atlantic will also have access to the Federal Reserve discount window. The Corporate stands ready to meet the liquidity needs of our members as they arise.

If Mid-Atlantic Corporate is not is need of SIP funds, should my credit union still consider participating in this program?

Yes. The CU SIP program allows a credit union to borrow funds from the Central Liquidity Fund (CLF) at a favorable interest rate. The SIP Notes bear the CLF Advance Rate, plus 25 basis points, making this an attractive investment alternative for credit unions. Also, SIP Notes are fully guaranteed by the National Credit Union Share Insurance Fund (NCUSIF).

Will Mid-Atlantic Corporate be issuing HARP or SIP Notes?

No, because Mid-Atlantic Corporate has no external borrowings and no shortage of liquidity. However, Mid-Atlantic Corporate will be facilitating access to these programs on behalf of our members. If your credit union is interested in participating in either HARP or SIP you should contact your Corporate Account Manager to obtain the application forms. Mid-Atlantic’s role in this process will be to forward the applications to the CLF for approval. The CLF will then determine which participating corporate credit union will be the issuer of the HARP or SIP Note to your credit union.

For more information on the CU HARP program, click here. PDF

December 11, 2008
Mid-Atlantic Corporate’s Comment on NCUA’s Liquidity Plans

The NCUA Chairman Michael Fryzel yesterday announced plans to provide additional liquidity to the credit union system through the Central Liquidity Facility. Chairman Fryzel announced two plans, CU Harp (Credit Union Homeowners Affordability Relief Program), which enables eligible credit unions to access CLF funds to help modify mortgage terms to assist delinquent borrowers. According to the NCUA release, the second program CU SIP, is designed to complement CU HARP by enabling the CLF to lend to credit unions to invest in NCUSIF guaranteed notes, the proceeds of which will be used to retire corporate borrowings from the Federal Home Loan Banks and the Federal Reserve.

At this time Mid-Atlantic Corporate is still analyzing the details of both programs, but it is unlikely that Mid-Atlantic will participate in CU SIP. In order to issue SIP Notes a corporate had to previously gain a guarantee of its external borrowings under NCUA’s Temporary Corporate Credit Union Liquidity Guarantee Program (TCCULGP). Since Mid-Atlantic has no external borrowings, and therefore no need for a guarantee under TCCULGP, we cannot offer any SIP Notes at this time. We do not anticipate Mid-Atlantic needing to participate in this program.

Mid-Atlantic Corporate has positioned ourselves to meet our members liquidity needs by diversifying our lines of credit. While Mid-Atlantic has maintained a line of credit with US Central, we have also diversified lines among several financial institutions. Before the end of the month, Mid-Atlantic will also have access to the Federal Reserve discount window. The Corporate stands ready to meet the liquidity needs of our members as they arise.

As stated above we are still reviewing the CU HARP program details. However we believe this program offers an encouraging step toward credit unions helping consumers who are in difficult financial straights.

We are just learning the details of these programs and will provide additional information to you as we learn more.