The NCUA announced Wednesday that Chairman Debbie Matz and BoardMember Michael Fryzel have agreed to extend the effective date ofthe agency's final loan participation rule to Sept. 23.
|The original date was July 25.
|In a release, the regulator said the board decided to extend thedate because some credit unions faced difficulties implementing the new rule by the compliancedeadline.
|Approved by the board during its June 20 monthly meeting, therule caps participation loan originations from a single lender to100% of net worth or $5 million, whichever amount is greater.
|Other requirements include a provision that requires purchasersto develop a loan origination policy, requires a written agreementbetween originators and borrowers, and requires originating lendersthat are federal credit unions to retain at least 10% of theloan.
|The NCUA said it will issue guidance to credit unions prior toSept. 23.
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