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NCUA's temporary final rule offers reg relief for CUs
Earlier this month, the NCUA Board approved a temporary final rule modifying certain regulatory requirements to help ensure that federally insured credit unions (FICUs) may be operational and liquid during the coronavirus pandemic. Following the rule becoming effective April 21, NAFCU sent members a Final Regulation Alert highlighting the relief provided by the temporary rule.
The temporary final rule, approved unanimously, to provide regulatory relief will temporarily:
- increase the maximum aggregate amount of loan participations that a federally-insured credit union (FICU) may purchase from an originating lender without a waiver from their Regional Director to $5 million, or 200 percent of the FICU's net worth;
- suspend requirements to refinance certain purchased obligations and certain limitations on the types of eligible obligations that a federal credit union (FCU) may purchase and hold by permitting a FCU with a CAMEL 3 rating to purchase eligible obligations irrespective of whether the obligation belongs to the purchasing FCU's members.
- toll the required timeframes for the occupancy or disposition of properties not currently in use.
The Final Regulation Alert also notes that the 255 days which accrue between April 21, 2020, and Dec. 31, 2020, when the rule expires, will not be counted toward the regulatory timeframes for the occupancy or disposition of acquired and abandoned premises, given the social distancing requirements.
In addition, because of the temporary and emergency nature of this temporary rule, there is no period for public comment. Credit unions are encouraged to send questions to NAFCU Senior Regulatory Counsel Elizabeth LaBerge via email at elaberge@nafcu.org.