ALEXANDRIA, Va. — The NCUA has heard “loud and clear” thatcredit unions do not like a proposed loan participation cap that would limit credit unions from participating in loans,in the aggregate, in excess of 25% of their net worth from a singleoriginator, Chairman Debbie Matz told attendees at the regulator'ssecond Listening SessionWednesday afternoon in Alexandria, Va.
|As a result, the NCUA is planning to make changes to the finalloan participation rule; in particular, the 25% limit, beforeissuing the final regulation, she said.
|Matz did not say what the final cap would be.
|The announcement came after a credit union executive inattendance told the chairman that limiting loan participations to25% net worth would be damaging, because credit unions haveinvested a lot of time in building a core group to manage loanparticipations, and develop a synergy in the group.
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