Search
 

NCUA Says FCUs Can Add Floor Rates to Home Equity Loans

Federal credit unions can add a floor rate to variable rate home equity loans if the original agreement disclosed that such an addition is possible, according to an NCUA legal opinion.

By Claude R. Marx | Updated on March 17, 2010

Federal credit unions can add a floor rate to variable rate home equity loans if the original agreement disclosed that such an addition is possible, according to an NCUA legal opinion.

NCUA Associate General Counsel Sheila Albin also wrote that an FCU can’t change an APR unless the change “is based on a publicly available index that is not under the FCU’s control.” Those credit unions can make changes if the agreement allows for stepped-rate or preferred rate plans.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.