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.