Federal credit unions can add a floor rate to variable rate homeequity loans if the original agreement disclosed that such anaddition is possible, according to an NCUA legal opinion.
|NCUA Associate General Counsel Sheila Albin also wrote that anFCU can't change an APR unless the change "is based on a publiclyavailable index that is not under the FCU's control." Those creditunions can make changes if the agreement allows for stepped-rate orpreferred rate plans.
|She also wrote that the credit union and the borrower can, bywritten agreement, change the terms of a home equity plan.
|Albin wrote the opinion earlier this month in response to aletter from Glenn D. Solomon, an attorney from Owings Mill,Maryland.
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