Mortgage Servicing Assets
The NCUA Board (Board) is issuing a final rule to permit federal credit unions (FCUs) to purchase mortgage servicing assets (MSAs), referred to as mortgage servicing rights in the proposed rule, from other federally insured credit unions subject to certain requirements. Under the final rule, FCUs with a CAMEL or CAMELS composite rating of 1 or 2 and a CAMEL or CAMELS Management component rating of 1 or 2, may purchase the mortgage servicing rights of loans that the FCU is otherwise empowered to grant, provided these purchases are made in accordance with the FCU’s policies and procedures that address the risk of these investments and servicing practices. The Federal Credit Union Act (the Act) permits FCUs to purchase mortgage servicing assets under their express authority to purchase assets from other credit unions.
|Date proposed:||Dec. 22, 2020|
|Comments due date:||Feb. 1, 2021|
April 1, 2022
|Rule compliance date:|
|Related Reg Report item(s):||Credit union regulator extends loan participations temporary rule, issues trio of proposals, sets savings insurance fund operating level|