Reminder: Comments on NCUA’s Proposed Rule on Loans and Lines of Credit to Members Due by October 9th

The National Credit Union Administration (NCUA) Board proposes to amend its regulations regarding loans and lines of credit to members. The proposal clarifies three aspects of the rule and seeks stakeholder input on two issues. All comments are due by October 9, 2018. 

The proposed rule improves clarity by:

  • Identifying in one section the various maturity limits applicable to federal credit union (FCU) loans;
  • Clarifying that the maturity for a “new loan” under generally accepted accounting principles (GAAP) is calculated from the new date of origination; and
  • Expressing clearly the limits for loans to a single borrower or group of associated borrowers under the general limits, loan participations, and commercial loans.

The proposal also seeks comments on two issues:

  • First, whether the agency should provide longer maturity limits for 1-4 family real estate loans and other loans, such as home improvement, mobile home, and second mortgage loans.
  • Second, whether a universal standard limit for commercial loans and loan participations that may be purchased with respect to a single borrower or group of associated borrowers should be adopted.

Click here to submit a comment using the PowerComment system.