Compliance Blog

Jan 25, 2008
Categories: Consumer Lending

NCUA acts to keep usury ceiling at current level; Issues ANPR on Mergers and Conversions; The Diet

Yesterday, NCUA's Board voted 3-0 to keep the federal credit union loan interest rate ceiling at 18 percent.  The decision is effective March 10, 2008, and will remain effective for 18 months.  Read the approved draft board action memorandum here.   NCUA prepared a draft letter to credit unions about the issue.  Have a peek at it here.

Many people are not aware that the Federal Credit Union Act sets the maximum interest rate for federal credit unions at 15 percent, unless NCUA's Board establishes a higher rate after considering certain factors.  That's what NCUA did yesterday.  But these decisions are temporary, so NCUA must revisit the issue at least every 18 months.

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NCUA also issued an ANPR regarding mergers and conversions.  NCUA is considering whether to issue regulations to govern the merger of a federally insured credit union into a mutual savings bank or a federally-insured credit union's conversion to a financial institution other than a mutual savings bank.  There are currently no NCUA regulations governing these types of transactions.   Read the ANPR here.  We'd love to have your comments.

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For those who would like a follow-up to Rep. Barney Frank's Press Conference, NAFCU should have a story here about what he said.

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Current Weigh Loss:  8 pounds. 
Needs to Lose: 62.
Days until Wedding: 107.
Current Estimated Odds of Success:   NASA's computers are still trying to compute the number.  Some guy called me from NASA and said they may need a bigger computer.

Due to this, shall we say, weight loss plateau, I've decided to do this.  This could get ugly.