NAFCU recommends flexible PALs parameters
"Access to safe and affordable lending options is a necessity, and given the current options available, the need for greater innovation and expansion of product availability has never been more paramount," wrote NAFCU Regulatory Affairs Counsel Kaley Schafer as the association offered feedback Thursday on the NCUA's proposed payday alternative loans (PALs) program changes.
The NCUA in May issued a proposed rulemaking to provide federal credit unions with an additional option under PALs. PALs II would not replace the current PALs rule, but would be an alternative option that features higher loan amounts, longer loan terms and less strict membership requirements. The NCUA also left open the option for PALs III, which could include different fee structures, loan features, maturities and loan amounts.
While most credit unions are supportive of a less restrictive PALs option, Schafer reiterated that the parameters should be flexible so that credit unions can develop a PALs option that best fits their members' needs.
NAFCU has long advocated for additional mechanisms to allow credit unions to provide more small-dollar loans to members in need, and also hosted a small-dollar lending working group to explore additional small dollar lending options for credit unions.
Read NAFCU's detailed recommendations here.
Add to Calendar 2019-06-04 14:00:00 2019-06-04 14:00:00 Understanding Adjustable Rate Mortgages Watch the Webinar On-Demand Discover the characteristics and components of Adjustable Rate Mortgages (ARMs) through a review of the common features and adjustment periods of ARMs and the current indexes used in today’s market. You’ll walk away with an understanding of the components of an adjustable rate including caps, how to calculate the FIAR, and how to determine the qualifying rate for Agency loans. Web NAFCU firstname.lastname@example.org America/New_York public
Genworth Mortgage Insurance
Get daily updates.
Subscribe to NAFCU today.