NAFCU President/CEO Dan Berger said in a letter Friday that thatthe NCUA should continue the current 18% loan rate ceiling.
The issue will be discussed at the NCUA board meeting on Thursday. The 18% ceiling would revertback to 15%, the statutory loan rate ceiling in the Federal CreditUnion Act, on March 10 without action from the board. “NAFCUbelieves that lowering the interest rate will be detrimental to thesafety and soundness to credit unions as it could potentiallyresult in a loss of capital,” Berger said in the letter.
“Given that the prevailing interest rates have increased overthe last six months, NAFCU believes the NCUA should keep the current 18% rate in effect,” headded.
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