Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA Pushes Back Loan Participation Effective Date
ALEXANDRIA, Va. (7/8/13)--There is now a new, later effective day for the National Credit Union Administration's final rule on loan participations: Sept. 23. The Credit Union National Association strongly urged the agency to address the effective date to give credit unions flexibility to adequately prepare for the rule's changes. The original effective date was July 25.

"NCUA's effective date change and the numerous key changes in the final rule are important indications that the board is responding to reasonable concerns without sacrificing safety and soundness, which is a commendable approach to regulation," CUNA Deputy General Counsel Mary Dunn noted when the effective date change was announced Wednesday.

The NCUA approved the loan participation rule at last month's open board meeting. The final features many improvements suggested by CUNA even though CUNA did not support any new loan participation rule at this time.

The rule sets a limit on loans from one originator of 100% of a credit union's net worth; and provides an expanded waiver process for the single-originator limit and limits to one borrower.

The NCUA also approved a provision so that credit unions pushed over the limit by new rule can move their loans into line: such credit unions would not have to sell loans immediately to come into compliance but can bring their participation activity into line in the ordinary course of business or seek a waiver.

For more on the loan participations rule, use the resource link.
Other Resources

NCUA Release
RSS print
News Now LiveWire
96 #creditunions across Britain have applied for funding from Lloyds Banking Group #CreditUnion Development Fund http://t.co/quq3OEE0Qq
13 hours ago
Eight new ideas hatched from @fileneresearch innovation incubator #NewsNow http://t.co/h6Ev6q3HnQ
14 hours ago
Homebuilder confidence continues to climb #NewsNow #Market http://t.co/UTBSpmoeZD
16 hours ago
Mich. league issues 4th consecutive dues rebate #NewsNow http://t.co/MGxMRRLrkb
17 hours ago
Passwords: It's not what you type, it's *how* you type via @Forbes http://t.co/QsPjmGjA4K
17 hours ago