National Credit Union Administration Chairman Michael Fryzel is calling on Congress to ensure a credit union role in the massive mortgage bailout that is moving swiftly to a vote.
Mr. Fryzel — who has been on the job six weeks — told key lawmakers in a letter Friday that the financial crisis has frozen credit availability and pushed up the costs of borrowing for credit unions, just as it has for banks and investment firms.
"While the NCUA has pursued aggressive regulatory and supervisory controls, and credit unions generally avoided the weak underwriting practices which contributed to the subprime crisis, the credit union industry is not immune from the effects of the prevalence of illiquid mortgage-related assets in the system," he wrote. "Those with concentrations of mortgage-related securities are finding it increasingly difficult to meet their members' liquidity needs."
