NCUA finalizes 'loans to members' rule at Thursday meeting
The NCUA board finalized a rule regarding loans to members and lines of credit to members at its Thursday meeting. The agenda also included a quarterly update on the National Credit Union Share Insurance Fund.
According to NCUA, the loans to members rule is designed to reduce regulatory burden, improve clarity and make compliance easier. CUNA supported the rule in its
- Makes NCUA’s loan maturity requirements more user friendly by identifying in a single section all of the various maturity limits applicable to federal credit union loans;
- Makes explicit that the maturity date for a “new loan” under generally accepted accounting principles (GAAP) is calculated from the new date of origination; and
- Amends the regulations to more clearly express the limits for loans to a single borrower or group of associated borrowers.
The rule will become effective 30 days after its publication in the Federal Register.
The report on the share insurance fund indicated total income of $74.3 million and net loss of $67.3 million for the quarter ending Dec. 31, 2018 and total income of $302.9 million and net loss of $226.5 million for all of 2018.
The balance sheet showed total liabilities and net position of $15.85 billion, a decrease of roughly $800 million from Dec. 31, 2017.