NCUA Offering Short-Term Lending Webinar
The NCUA announced it will present a small-dollar lending webinar on Wednesday, April 16.
Economic Development Specialist Tom Penna, Jr., from NCUA’s Office of Small Credit Union Initiatives, and Lucinda Johnson, program officer in NCUA’s Office of Examination and Insurance, will participate in the event starting at 2 p.m. Eastern.
Representatives from two credit unions that are active in small-dollar lending will also participate in the webinar, which will discuss the creation of short-term lending programs.
Topics include the benefits of offering short-term, small-dollar loans for a credit union’s portfolio mix. The regulatory issues and costs associated with these loans will also be discussed.
The NCUA Board approved a rule in 2010 that allows federal credit unions to offer an affordable source of short-term credit to their members.
The agency said demand for these loans has grown in recent years. According to the NCUA, as of Dec. 31, 2013, there was $27 million outstanding in low-cost credit union alternative payday loans, representing a year-over-year increase of 27.6%.