Can credit unions purchase participation loans?

Happy Wednesday, Compliance Friends! It was nice seeing some of you a couple weeks ago at Compliance School!

Recently I’ve received a couple questions regarding participation loans, so I figured it would be a good idea to compose a blog on the topic.

Section 701.22 of NCUA’s regulations discusses loan participations. Section 701.22(b) states:

“A federally insured credit union may purchase a participation interest in a loan from an eligible organization only if the loan is one the purchasing credit union is empowered to grant…”


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