NCUA LETTER TO FEDERAL CREDIT UNIONS |
NATIONAL
CREDIT UNION ADMINISTRATION
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DATE: May 2002 LETTER NO.: 02-FCU-07 TO: All Federal Credit Unions SUBJ: Neighborhood Reinvestment Corporation Dear Manager and Board of Directors: As part of the National Credit Union Administration’s (NCUA) “Access Across America” program, we are continuing to actively pursue and identify organizations and entities with which credit unions can partner in their efforts to create economic empowerment in the neighborhoods and communities they serve. In addition to numerous programs and opportunities provided by federal government departments and agencies, there are other government-sponsored and non-profit organizations that credit unions may wish to partner. One such organization involved with community development efforts is the Neighborhood Reinvestment Corporation (NRC). The NRC is the cornerstone of the NeighborWorks® System. The NRC is a congressionally chartered, public nonprofit corporation, headquartered in Washington, D.C., and staffed in nine regional offices. The Board of the NRC consists of representatives from the five federal financial regulatory agencies as well as the Department of Housing and Urban Development. NCUA Board Member Deborah Matz represents the NCUA on the NRC Board. The NRC has five core activities:
The NeighborWorks® network was founded by NRC and is a network of community-based non-profits that has evolved from 34 organizations operating in a dozen states in the 1970s to 225-member network working today in more than 2,000 communities – from the largest cities to some of the smallest rural communities. These NeighborWorks® organizations function as partnerships of local residents, lenders and other business leaders, and local government representatives. They produce creative strategies, share best practices, and develop flexible financing mechanisms. The Neighborhood Housing Services of America (NHSA) is a secondary market for a range of investment vehicles originated by NeighborWorks® organizations. The NHSA is funded primarily by social investors that purchase loans made by NeighborWorks® organizations, thus replenishing their revolving loan funds and enabling them to finance more homeownership rehabilitation and multi-family housing. Credit unions may wish to pursue partnerships with the 225 network members through the following areas:
Through relationships with organizations such as the Neighborhood Reinvestment Corporation, credit unions can augment the financial services provided to their current members while facilitating expansions into all segments of their fields of membership. For additional information regarding the Neighborhood Reinvestment Corporation, contact NCUA’s Office of Credit Union Development at 703-518-6610 or visit www.accessacrossamerica.gov/resources.html. Sincerely, /S/
Dennis Dollar |