NCUA Board poised to issue asset securitization proposal

The NCUA Board today is set to release a proposal on asset securitization by credit unions – as recommended by NAFCU in its “Dirty Dozen” list of rules to amend or eliminate – and a final rule on voluntary liquidation.

The board today is also slated to propose changes to its appraisal rule, which could include measures sought by NAFCU to ease current appraisal disclosure requirements, and a charter conversion request from Mainstreet Credit Union in Lenexa, Kan.

NAFCU’s “Dirty Dozen” list includes rules the association has targeted for revision or elimination to advance the goal of regulatory relief. Topping the list is expansion of credit unions’ investment authority to include limited derivatives activities (for which a rule was finalized in January) and authority for credit unions to securitize loans. It also calls for expanded authority for credit unions to invest in mortgage servicing rights.

NCUA’s proposed rule on voluntary liquidations would allow use of electronic notices and electronic delivery of account funds in such liquidations. NAFCU supported the proposal insofar as it recognizes technological advances at credit unions, and it urged further measures along that line, such as revising the agency’s advertising rules to accommodate the rise of social media and mobile banking.

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