Philadelphia CUSO said through June 30, it closed 169 loans for $39.5 million for its 12 owner credit unions in Pennsylvania and Delaware.
Almost a year to the date since Navy Federal Credit Union launched its commercial participation loan program, the country’s largest cooperative said it is ready for changes mandated by an NCUA rule even after the regulator recently extended a compliance deadline.
The lending environment is undergoing an evolution. The continual entry of new players—especially on the Internet—has sharpened competitive knives that are cutting into credit union income. Business loans are an avenue for lenders to travel, since non-interest income is becoming so critical to survival.
This preview from our July 17 print edition takes a look at the NCUA's new loan participation rule.
Rule finalized in June now to kick in on Sept. 23 instead of July 25, with guidance promised by then.
During his June 27 confirmation hearing, NCUA Board nominee Richard Metsger dodged what might have been his most controversial question. Is raising the member business lending cap a good idea?
For some credit unions and CUSOs, the newly approved changes to the loan participation rule are apt to leave a bittersweet residue within their business loan portfolios.