Removing Barriers Blog

NCUA Releases Legal Opinion Letter on Loan Participations
Posted September 22, 2015 by CUNA Advocacy

NCUA has recently released a Legal Opinion Letter on loan participations and indirect lending.   At issue is whether a FICU can be considered as the originating lender when the credit union has generated the loan by an indirect lending arrangement with a retailer.  NCUA now allows for a broader interpretation of the definition of originating lender.  

CUNA and staff at the Georgia League have been pushing NCUA on this issue for the past several months. Several meetings were held at NCUA’s headquarters in Alexandria, VA on this topic, which led to the final resolution in this legal opinion letter.

For more information, please read this post on CUNA’s Compliance Blog (Compblog). We suggest you read the legal opinion letter (15-0813) in its entirety if you are considering purchasing a loan participation generated from an indirect lending arrangement.