FEDERAL WAY, Wash. and BEAVERTON, Ore. (7/30/13)--State regulators in Washington and Oregon last week issued guidance for state-chartered credit unions on credit union property and manufactured homes, the Northwest Credit Union Association (NWCUA) said.
The Oregon Department of Consumer and Business Services (DCBS) released a Permanent Administrative Rule, making permanent a temporary rule it issued in January regarding unimproved credit union property held for future expansion (NWCUA Anthem Recap July 26). The rule aligns Oregon rules with federal regulations issued by the National Credit Union Administration to give state-chartered credit unions parity. State-chartered credit unions have up to six years to partially utilize unimproved property held for future expansion.
The Washington Department of Financial Institutions (DFI) released a Division of Credit Unions Bulletin. B-13-11 discusses indirect manufactured home lending and the DCU's expectations for credit unions exploring any new lending program.
Washington state-chartered credit unions that are considering making indirect manufactured home lending loans should contact their assigned DCU caseload examiner, said the bulletin. Prior to implementing any such program, DCU representatives want to meet with credit union representatives to discuss the credit union's program and plans.
The DFI expects that credit unions entering the indirect manufactured home lending field demonstrate a complete understanding of its product and risk levels, the bulletin said.
"The credit union should develop strong policy requirements and procedural guidance to ensure it sufficiently controls the risks associated with the program and that the program is satisfactorily managed and monitored," DFI said.
To read the bulletin, use the link.