NCUA Board Extends Temporary COVID-Related Rules

The National Credit Union Administration Board has approved an extension of its modification of certain rules to help federally insured credit unions stay in operation, while addressing some of the economic problems caused by the pandemic.

The rules now will be in effect until the end of 2022. They had been scheduled to expire at the end of this year. The board approved the rules by notation.

The board approved an extension of the rule that increased the maximum aggregate amount of loan participations that a federally insured credit union may purchase from a single lender to the greater of $5 million, or 200% of the credit union’s net worth. The rule also temporarily suspends certain limitations on the eligible obligations that a federal credit union may purchase and hold.

The rule suspends the required timeframes for the occupancy or disposition of property not being used for federal credit union business or that have been abandoned.

Referring to the pandemic, the board said, “It is a continually changing situation and difficult to anticipate how the disruptions caused by the crisis will manifest themselves within the financial system and how individual credit unions may be impacted.”

The rules are scheduled to be published in the Federal Register on Wednesday.

Credit Union National Association President/CEO Jim Nussle praised the move. “Extending these modifications continues to allow credit unions the flexibility to continue to meet member needs as they arise,” Nussle said.

Spread the word. Share this post!