Newsroom

August 21, 2018

Should longer maturity limits exist on certain lending actions?

Reg AlertShould the NCUA provide longer maturity limits for certain lending actions and, if so, what would be appropriate maturity limits? NAFCU is requesting this feedback, among other comments, on a recently issued NCUA proposal by Sept. 26.

This NCUA proposal would, among other things, make explicit the maturity date for a "new loan" and possibly provide longer maturity limits for one-to-four family real estate, home improvement, mobile home and second mortgage loans.

The proposal, issued during the August board meeting, would also streamline regulations regarding loans by identifying in one section all of the various maturity limits applicable to federal credit union loans, and clearly express the limits for loans to a single borrower or group of associated borrowers.

In a Regulatory Alert issued to NAFCU members Monday, the association also asks if the NCUA should provide a single universal standard limit for commercial loans and loan participations that may be purchased with respect to a single borrower or group of associated borrowers.

Comments on this proposal are due back to NAFCU by Sept. 26; comments are due to the NCUA by Oct. 9. NAFCU members can provide feedback via the association's Regulatory Alert.