NCUA Issues Proposed Rule Regarding Loans and Lines of Credit to Members

On August 10, 2018, the NCUA Board published in the Federal Register proposed changes to the guidelines regarding FCU loans and lines of credit.

First, the Board recommended making the NCUA’s loan maturity requirements more user-friendly by identifying in one section all of the various maturity limits applicable to FCU loans. Second, the Board proposed to make explicit in its regulations that the maturity date for a new loan under GAAP is to be calculated from the new date of origination.  Third, the Board sought comment on whether longer maturity limits should be provided for 1-4 family real estate loans as well for home improvement loans, mobile home loans, and second mortgage loans. Lastly, the Board proposed to more clearly express loan limits to single borrowers and to groups of associated borrowers.

The Board believes the proposed changes would reduce regulatory burden, improve clarity, and make compliance easier and requested comments to be submitted on or before October 9, 2018.

The proposed rule can be found here.