The National Credit Union Administration (NCUA) recently issued a new, final rule with significant changes to the regulatory provisions that govern credit unions’ loans and lines of credit to members, loan participations, and eligible obligations.
The NCUA’s Board characterized the updated provisions as following a more “principles-based” approach to regulating loan participations and eligible obligations, reflecting its intent to provide federally insured credit unions (FICUs) with more flexibility to take advantage of opportunities offered by fintech partners.
The final rule becomes effective on October 30, 2023, and is largely in line with the amendments that the NCUA first proposed at the end of 2022.
LoanStreet has prepared the following brief overview of the rules’ substantive changes to help our clients better understand this new regulatory landscape and respond effectively.
