Summary outlines loan participation temp rule extension

(Jan. 15, 2021) A final rule extending to Dec. 31, 2021 a temporary final rule on loan participations is the subject of the latest summary to be developed by NASCUS and posted on the association’s website.

The summary is available to members only.

At its Dec. 17 meeting, the NCUA Board approved (unanimously), an extension for a temporary final rule that increases the maximum aggregate amount of loan participations that a federally insured credit union (FICU) may purchase from a single originating lender without seeking a waiver from NCUA to the greater of $5 million or 200% of the FICU’s net worth (up from the greater of $5 million or 100% of the FICU’s net worth).

The rule had been slated to expire Dec. 31, 2020. The temporary rule, adopted by the NCUA Board as a relief measure for credit unions in the midst of the coronavirus crisis last spring, originally took effect April 21.

Summary: Final rule, Temporary Regulatory Relief in Response to COVID-19 — Extension (members only)