NCUA Tackles Loan Origination, Reg Flex Next Week
The NCUA is slated to unveil proposed rules regulating loan participation by credit unions and providing additional regulatory flexibility at next Thursday’s meeting.
NCUA Chairman Debbie Matz telegraphed both rules during her speech at NAFCU’s Congressional Caucus in September.
Matz said that originators would have to retain some part of the loan risk and “cannot solely reap the rewards while exporting all of the risk to other credit unions.’’
She also said that the agency would expand some of the benefits that are currently only available to well-managed credit union under the Regulatory Flexibility program. The program exempts CAMEL 1 and CAMEL 2 from certain regulations, such as limiting charitable donations to nonprofit organizations promoting credit unions and requirements to stress test certain investments.
The only privilege that the NCUA cannot extend without permission from Congress is the ability to purchase eligible obligations from other federally insured CUs without regard to member status or the need to complete a secondary-market pool.
The board also plans to approve the agency’s five-year strategic plan and its performance budget for next year.
In addition, NCUA CFO Mary Ann Woodson is scheduled to give a report on the health of the NCUSIF and the Temporary Corporate Credit Union Stabilization Fund.
During the past few months Woodson has reported declines in the percentage of insured shares in CAMEL 3, 4 and 5 credit unions.
The NCUA Board is also scheduled to hear a request from the $119 million Henrico FCU of Henrico, Va., to expand its community charter.
The meeting, the last scheduled one of the year, is set for 10 a.m. at the agency’s headquarters in Arlington, Va.