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NCUA Approves Loan Participation Rule

by Ken Anderson | Jun 21, 2013
The board of the National Credit Union Administration has reportedly issued a final rule that revises the agency's existing loan participation investment rules for all federally-insured credit unions (FICUs) that purchase participations in loans originated by other credit unions and eligible organizations. Credit Union National Association (CUNA) president and CEO Bill Cheney tells CUNA NewsNow that the final rule, which includes major changes urged by CUNA, is now a much more workable framework for credit unions to utilize loan participations.

The board of the National Credit Union Administration has reportedly issued a final rule that revises the agency’s existing loan participation investment rules for all federally-insured credit unions (FICUs) that purchase participations in loans originated by other credit unions and eligible organizations.  Credit Union National Association (CUNA) president and CEO Bill Cheney tells CUNA NewsNow that the final rule, which includes major changes urged by CUNA, is now a much more workable framework for credit unions to utilize loan participations.

The effective date of the final rule is 30 days after publication in the Federal Register.