With the effective date of the revised loan participation rule less than one week away, credit unions and CUSOs have taken another look at their lending programs to see if any adjustments need to be made.

At its June 20 meeting, the NCUA Board approved several revisions to the rule, including limiting purchasing credit unions to a single-originator concentration of $5 million or 100% of net worth, whichever is greater.

The NCUA also approved a change that allows federally insured credit unions to establish different underwriting standards for loan participations than they use when originating their own loans. Credit unions will also now have the ability to apply for waivers on certain key provisions of the rule.

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