Leagues Urge CUs to Comment on Proposed Rules

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Last week the National Credit Union Administration (NCUA) Board issued a proposed rule that will delay the effective date of the Risk-Based Capital (RBC) rule for one year, to Jan. 1, 2020, and amend the definition of a “complex” credit union, increasing the asset threshold from $100 million to $500 million.

The board also proposed amended regulations for a Loans and Lines of Credit to Members rule. The proposal clarifies several aspects of the rule and seeks comment on:

  • 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.
  • 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.

Full summaries of both proposed rules are available in PowerComment.

“I encourage our credit unions to comment on both of these proposed rules,” said Sharon Turley, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues. “The RBC proposal has a short 30-day comment period—and while it might seem like a slam-dunk, we should commend the NCUA’s efforts to delay the rule and provide meaningful comment on the proposed definition of a ‘complex’ credit union. The summary provided in PowerComment dives deeper into how the NCUA established a proposed $500 million threshold.”

The proposed Loans and Lines of Credit to Members rule includes beneficial streamlining and clarifications; however, it also requests comments on the two substantive issues above. Credit unions have the opportunity to weigh in.

For example: Should the loan maturity limit for “other loans,” such as mobile home purchases or home improvement loans, be greater than 20 years? The summary provided in PowerComment provides greater detail on the proposal and request for comments.

PowerComment is the powerful online tool designed to allow you to find up-to-date and easily digestible information on proposed regulations, participate in online discussions to increase your understanding of proposed rules, and write your personalized comment letter to regulators and immediately submit it.

For questions regarding the proposed rules or PowerComment, email Sharon Turley.

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