4 Things You REALLY Need To Know To Start Your Credit Union Day
by Henry Meier
There are some days when finding something to write about is more difficult than finding a Yankee team that’s won the world series in the last 20 years without a steroid abuser, and others when it is easier to provide useful information than it is to bet against Phil Mickelson winning the U.S. Open. So as faithful blog readers will know, here is a quick hit of items, any one of which you may see me comment on in more detail in future posts. (I know, I know, the suspense is killing you.)
Our sleep deprived friends in the State Senate and Assembly will reconvene later this morning after working into the early morning hours. Before going to bed last night, the Senate passed and sent to the Assembly A.3510/S.2089, our credit union powers bill. (Thank you, Senator Griffo!) If you want to see why some of us can’t help but love being around the Legislature, tune in to the live session of the Assembly and you can actually keep an eye on developments with this bill (A.3510/S.2089). Keep an ear out for rules report number 621. It’s what I will be doing.
At its monthly board meeting yesterday, NCUA unfortunately decided to finalize a regulation capping credit union loan participations and extending this regulation to state chartered credit unions. The final rule caps the amount of loan participations credit unions can purchase from any single originator at an amount not to exceed the greater of $5 million or 100% of the participating credit unions’ net worth. In addition, it also caps at 15% of net worth the amount of loan participations a credit union can be holding generated by one borrower. There are other tidbits in this regulation as well, so for those of you who engage in a lot of participations, this is certainly a regulation you should quickly read up on.
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