Hoffman urges delay in loan participation rule
Sept. 18, 2013 – NAFCU Regulatory Affairs Counsel PJ Hoffman on Tuesday urged NCUA Chairman Debbie Matz to extend the effective date for the loan participation final rule since the additional guidance credit unions need on waivers has not yet been issued.
Hoffman said supervisory guidance on how to request waivers from provisions of the final rule is necessary for federally insured credit unions to make decisions about their loan participation portfolios. The guidance was promised by NCUA when the effective date was first postponed to Sept. 23 in July, but it has not been released yet.
“NAFCU is concerned that the deadline is fast approaching,” Hoffman wrote. “Please consider extending the deadline beyond September 23 for implementation of the loan participation final rule so that credit unions can digest the upcoming waiver guidance.”
Hoffman acknowledged that credit unions which exceed the single-originator or single-borrower concentration limits of the rule will be grandfathered in, but he said other credit unions require guidance to “have a good understanding of the waiver process going forward.”