NCUA Board eyes usury cap, NCUSIF report today

The NCUA Board today will vote on the continuation of the federal credit union loan interest rate ceiling and receive a quarterly report on the National Credit Union Share Insurance Fund during its open board meeting.

The board meeting, the first led by Acting Chairman J. Mark McWatters, begins at 10 a.m. Eastern and will be streamed live on the NCUA’s website.

NAFCU has urged the board to maintain the current 18 percent usury ceiling after March 10. NAFCU President and CEO Dan Berger warned that allowing a drop back to 15 percent would be “detrimental to the safety and soundness of credit unions.”

The Federal Credit Union Act sets a cap of 15 percent but permits NCUA’s board to make adjustments based on criteria related to trends in market rates.

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