ALEXANDRIA, Va. (6/19/14)--The National Credit Union Administration board will cover several topics in its monthly open meeting today, including a final rule containing the first update of the voluntary liquidation rule since 1993.
The board has proposed to amend its voluntary liquidation regulation to reduce administrative burdens on voluntarily liquidating federal credit unions. The rule would also recognize technological advances since the last revision by:
The board will also discuss a proposed rule that would amend Part 721 of the NCUA's rules and regulations to allow credit unions to securitize their own loans. Another proposed rule to be discussed regarding safe harbor is a companion to the securitization proposed rule.
This proposed rule clarifies that the NCUA will recognize assets that are properly securitized, or which qualify as loan participation, as the property of investors, and the agency will not claim these assets in liquidation. This proposed rule closely follows the safe harbor adopted by the Federal Deposit Insurance Corporation.
The board will also discuss a proposed rule on appraisal requirements. This comes as a response to comments received during the NCUA's annual regulatory review. The Credit Union National Association requested an update to the appraisal rule in its 2013 comment letter to the NCUA for its annual regulatory review.
The proposed rule would amend the NCUA's requirement for making appraisals available to applicants and the appraisal requirements for transactions involving an existing extension of credit. NCUA has stated it believes these changes will reduce unnecessary regulatory burden on credit unions.