Mon, Jul 28, 2014
NCUA recently issued a proposed rule that would allow credit unions to securitize loans. The securitization proposal amends NCUA’s incidental powers rule to provide that federal credit unions have the authority to securitize their own loans. The proposal provides little description of the securitization process, but provides details on what NCUA expects from a credit union that chooses to securitize its own loans. Most actual securitization requirements will be dictated by federal securities regulations, state laws, and market expectations. NCUA also issued a companion proposal that would create a safe harbor for assets transferred by a credit union in connection with a securitization or a participation. Comments are due to NCUA by August 25; please send comments to %firstname.lastname@example.org">CUNA staff by August 1.