NCUA Extends COVID-19 Regulatory Relief Through 2022

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The National Credit Union Administration (NCUA) recently announced that the board further extended its temporary final rule, which modified certain regulatory requirements to help ensure that federally insured credit unions (FICUs) remain operational and can address economic conditions caused by the COVID-19 pandemic.

The temporary final rule issued by the board in April 2020 temporarily raised the maximum aggregate amount of loan participations that a FICU may purchase from a single originating lender to the greater of $5,000,000 or 200 percent of the FICU's net worth. The rule also temporarily suspended limitations on the eligible obligations that a federal credit union (FCU) may purchase and hold. In addition, given physical distancing practices necessitated by COVID-19, the rule also tolled the required timeframes for the occupancy or disposition of properties not being used for FCU business or that have been abandoned. The temporary amendments were originally scheduled to expire on Dec. 31, 2020. The board subsequently extended their effectiveness until Dec. 31, 2021. Due to the continued impact of COVID-19, the board decided was necessary to further extend the effective period of these temporary modifications until Dec. 31, 2022.

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