The NCUA board of directors has extended the effective date of its temporary final rule that modified certain regulatory requirements to help ensure that federally insured credit unions remain operational and can address economic conditions caused by the COVID–19 pandemic.
Unanimously approved via a notation vote, the temporary final rule will now remain effective through Dec. 31, 2022. The rule is expected to be published in the Federal Register on Wednesday.
The temporary final rule originally issued by the board in April 2020 raised the maximum aggregate amount of loan participations that a federally insured credit union may purchase from a single originating lender to the greater of $5,000,000 or 200% of the credit union’s net worth. The rule also temporarily suspended certain limitations on the eligible obligations that a federal credit union may purchase and hold.
The rule also suspended the required timeframes for the occupancy or disposition of properties not being used for federal credit union business or that have been abandoned, according to the agency.