The NCUA’s recent asset securitization proposal, which would allow credit unions to bundle the loans they originated and sell them as securities on the secondary market, is tangled in so many tripwires that it severely limits the number of credit unions that can participate. So says many of the credit union executives and industry experts who submitted letters to the NCUA during the comment period that closed Aug. 25.

Moreover, the NCUA’s lack of experience and oversight in the secondary market further hamstrings credit unions trying to attract investors without violating what some experts believe are crippling restrictions. If the proposal is adopted as presented, credit unions may wind up playing a zero sum game, according to Chris Howard, vice president of research for the Washington-based Callahan & Associates.

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

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

  • Critical 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 and

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


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 and

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

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