ALEXANDRIA, Va. – NCUA board members decided unanimously by a notation vote to extend the effective date of the agency’s final rule on loan participations to September 23, 2013. The original effective date was July 25.
The Board approved the new rule, available online here, at its June 20, 2013, open meeting. Areas changed under the new rule included concentration limits, risk retention requirements, and underwriting.
Some federally insured credit unions faced difficulties implementing the new rule by July 25, 2013, according to the NCUA, so the Board extended the date to provide those credit unions with additional time to comply.
NCUA will issue guidance to credit unions prior to September 23.
"NCUA's effective date change and the numerous key changes in the final rule are important indications that the board is responding to reasonable concerns without sacrificing safety and soundness, which is a commendable approach to regulation," CUNA Deputy General Counsel Mary Dunn noted when the effective date change was announced.