Thursday, April 19, 2018

Wisconsin CU Regulator Writes CUs about Purchases of Whole Loans

The Wisconsin credit union regulator on April 5 wrote that the purchase of whole loans by Wisconsin chartered credit unions is not permissible under state law.

The Office of Credit Unions noted that during recent examinations it discovered "several situations in which credit unions have purchased whole loans (either individually or in a pool of loans)." The regulator also stated that these loans were non-member loans.

According to the letter, the purchasing of whole loans of non-members is not a permissible activity for Wisconsin state-chartered credit unions.

The Office of Credit Unions advised credit unions that have purchased non-member loans to contact your legal counsel to become compliant.

Read the letter.

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