NCUA eyes asset securitization rule, appraisals
June 13, 2014 – The NCUA Board is slated to release a proposal next week on asset securitizations by credit unions – a nod to one of the key recommendations in NAFCU's "Dirty Dozen" rules list – and a final rule on voluntary liquidation.
NAFCU's "Dirty Dozen" list includes rules the association has targeted for revision or elimination to advance the goal of regulatory relief. Topping the list is expansion of credit unions' investment authority to include limited derivatives activities (for which a rule was finalized in January) and authority for credit unions to securitize loans. It also calls for expanded authority for credit unions to invest in mortgage servicing rights.
The specifics of NCUA's securitization proposal will be released during the June 19 open meeting.
Also slated for next week's meeting are:
- a final rule on voluntary liquidations;
- a proposed rule on safe harbor under the agency's involuntary liquidations rule;
- proposed appraisal rule revisions;
- a charter conversion request from Mainstreet Credit Union (Lenexa, Kan.).
NCUA's proposed rule on voluntary liquidations would allow use of electronic notices and electronic delivery of account funds in such liquidations. NAFCU supported the proposal insofar as it recognizes technological advances at credit unions, and it urged further measures along that line, such as revising the agency's advertising rules to accommodate the rise of social media and mobile banking.
The proposed appraisal rule changes could include measures sought by NAFCU and highlighted by NCUA in connection with last year's review of the appraisal rules.
Next week's open board meeting is set for 10 a.m. Eastern in Alexandria, Va.
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