Proposal on credit union loan maturities, one-borrower limits slated for Federal Register

A proposed rule issued Aug. 2 on credit union loan maturities and limits on loans to one borrower is slated for publication Friday in the Federal Register. The proposal was issued with a 60-day comment period, expected to close Oct. 9.

The proposed rule by the National Credit Union Administration (NCUA) is aimed at making the rule clearer and easing compliance. The proposal:

  • identifies all the various maturity limits set for federal credit union loans in one section of the rule;
  • explicitly states that the maturity date for a “new loan” under generally accepted accounting principles (GAAP) is calculated from the new date of origination;
  • seeks comment on whether the agency should provide longer maturity limits for 1-to-4 family real estate loans and other loans permitted by the Federal Credit Union Act (FCU Act) such as home improvement, mobile home, and second mortgage loans; and
  • seeks comments on proposed clarifications regarding limits on loans by federally insured (including state-chartered) credit union loans to a single borrower or group of associated borrowers; and on whether there should be a universal standard limit instead of current product-specific limits (specifically, regarding commercial loans and loan participations).

Proposed Rule: Loans to Members and Lines of Credit to Members (Federal Register notice)

Be the first to comment

Leave a Reply

Your email address will not be published.