The NCUA has proposed to amend its investment regulation to permit FCUs to purchase mortgage servicing rights (MSRs) from other FICUs under certain conditions, such as that the underlying mortgage loans of the MSRs are loans the FCU is empowered to grant.

Today, we filed a comment letter in support the proposed rule to remove the prohibition against FCUs from purchasing MSRs as permissible investments while also maintaining safety and soundness. However, we recognize that the purchase of MSRs will not be appropriate for all FCUs given the risks and compliance considerations associated with MSRs.