Newsroom

June 18, 2014

NCUA proposes CU asset securitization authority(1)

June 19, 2014 – The NCUA Board today issued a proposed rule on asset securitization authority for credit unions and approved updates to its rule on voluntary liquidations to accommodate credit unions' use of technology.

Today's proposal on asset securitization – an authority urged by NAFCU in its "Dirty Dozen" list – would clarify that a federal credit union, and a federally insured, state-chartered credit union where state law allows, may securitize loans that it originates. It is "an activity incidental to the business for which an FCU is chartered," according to the rule summary.

The proposal is out for a 60-day comment period. NAFCU is preparing a Regulatory Alert seeking members' input.

Also up for action today are:

  • proposed amendment to a requirement on appraisal reports;
  • a proposed rule on safe harbor related to asset securitization;
  • a request by Mainstreet Credit Union (Lenexa, Kan.) to convert to a federal charter.