The NCUA board of directors yesterday approved a proposed rule that would raise the threshold for commercial real estate loans needing appraisals to $1 million from $250,000. The rule—out for a 60-day comment period—was primarily proposed, the agency said, to deliver regulatory relief to credit unions.
During yesterday’s meeting, the board also announced the National Credit Union Share Insurance Fund posted a net income of $32.5 million in the second quarter of 2018, primarily due to the strong investment income earnings. The Share Insurance Fund’s net position remained at $15 billion. As of June 2018, the calculated equity ratio is 1.35 percent, based on insured shares of $1.1 trillion. Second-quarter investment and other income was $76 million. Operating expenses were $47.5 million. The provision for insurance losses decreased overall by $4 million.
Additionally, the board approved a request from the Texas Credit Union Department to revise its member business lending rule to provide parity with NCUA’s rule.
For more information on Thursday’s board meeting, visit NCUA’s website.