NAFCU President and CEO Dan Berger wrote to the NCUA Wednesday to recommend the board consider increasing the interest rate ceiling above the current 18 percent during today’s NCUA Board meeting – the interest rate ceiling was listed as an item to be considered on the agenda.
In the absence of an increase, Berger urged the NCUA to at the very least maintain the current 18 percent interest rate ceiling and further explore the use of a floating interest rate ceiling – specifically a ’15 percent spread over Prime.’
During its January 2020 meeting, the board agreed to extend the 18 percent loan interest rate ceiling until Sept. 10, 2021. NAFCU has continuously offered this recommendation to the NCUA and believes that the board has the authority to implement the recommendations as long as the board continues to reauthorize such a structure every 18 months, as required by the Federal Credit Union Act.
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