The National Credit Union Administration Board on April 16 approved a temporary final rule providing federally insured credit unions with regulatory relief during the COVID-19 crisis.
The Board temporarily raised the maximum aggregate amount of a loan participation that a federally insured credit union (FICU) can purchase from a single originating lender to the greater of $5 million or 200 percent of a FICU's net worth. NCUA's current rule limits the maximum aggregate amount of a loan participation that can be bought from a single originating lender to the greater of $5 million to 100 percent of net worth.
The Board also suspended limitations on eligible obligations that a federal credit union (FCU) may purchase and hold. Specifically, a FCU with a CAMEL composite rating of 1, 2, or 3 may purchase eligible obligations of FICUs or liquidating credit unions irrespective of whether the obligation belongs to the purchasing FCU's members. The rule previously limited purchases of eligible obligations to a FCU with a CAMEL ration of 1 or 2.
In addition, the Board is tolling the required timeframe for the occupancy or disposition of properties not being used FCU business or that have been abandoned.
These temporary modifications are effective upon publication in the Federal Register and will be in place until December 31, 2020, unless extended by the NCUA Board.
Read the temporary final rule.
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