NCUA Board Adds Final Loan Participation Rule to Thursday Agenda
The NCUA’s amended and long-awaited loan participation rule will be unveiled this week.
“NCUA Board members agreed today to add the Final Rule on Loan Participations to the agenda for consideration this Thursday,” Public Affairs Specialist John Fairbanks said Tuesday afternoon.
The board meets Thursday at 10 a.m. at the NCUA headquarters in Alexandria, Va.
The rule, proposed back in December 2011, would limit loan participations from a single originator to 25% of net worth. The cap would have a negative effect on credit unions that participate in CUSOs that manage loan participations, critics have said.
NCUA Chairman Debbie Matz said during a May 2012 Town Hall meeting that the regulator was planning to adjust the cap before issuing the final regulation. However, she did not say what the cap would be in the final rule.
The meeting agenda also includes a proposed Illinois member business loan rule.