The National Credit Union Administration Board unanimously approved, by notation vote, an extension of the effective date of its temporary final rule, which modified certain regulatory requirements to help ensure that federally insured credit unions remain operational and can address economic conditions caused by the COVID–19 pandemic.
The temporary final rule(opens new window) issued by the Board in April 2020 raised the maximum aggregate amount of loan participations that a federally insured credit union may purchase from a single originating lender to the greater of $5,000,000 or 200 percent of the credit union’s net worth. The rule also temporarily suspended certain limitations on the eligible obligations that a federal credit union may purchase and hold.
In addition, given physical distancing practices necessitated by the COVID–19 pandemic, the rule suspended the required timeframes for the occupancy or disposition of properties not being used for federal credit union business or that have been abandoned.
These temporary modifications will remain effective until Dec. 31, 2022. The rule is expected to be published in the Federal Register on Dec. 22, 2021.