NCUA May Change Participations, TIPS Regs
The NCUA’s second Listening Session, which attracted approximately 100 participants to the Westin Hotel in Alexandria, Va., was intended to address exam issues and the regulatory burden. The event did address exams, but questions also revealed two potential regulatory changes.
The most exciting news is the scrapping of the proposed 25% participation loan cap, which would limit credit unions to investing 25% of their net worth in one participation loan originator. Chairman Debbie Matz said the NCUA has heard “loud and clear” that credit unions do not want that limit.
“It’s understandable, the NCUA isn’t perfect, but there’s not a lot an examiner can do about it, and it puts them on the defensive and makes things difficult,” Fazio said.
Joan Moran, president/CEO of the $68 million Department of Labor FCU in Washington, said her table wanted to know what a credit union executive should do if an examiner insists upon implementing something that isn’t required by regulation.