Links in “Lending”

Tempe region finds problems at CUs with interest accrual calculations, and how late fees are applied. [6/24]

At yesterday’s board meeting, the NCUA Board approved a final rule on loan participations making some changes to the proposed rule, specifically the concentration limit for loan participations with the same seller has been increased to $5 million or 100% of net worth, whichever is greater. [6/21]

At yesterday's board meeting, NCUA approves amendments to Parts 701 and 741 – the loan participation rule, eligible obligations rule and requirements for insurance rule. [6/21]

NCUA adds a final rule on loan participations to its June 20 agenda; proposed rule is controversial and credit union trade associations had urged the agency to withdraw it, but the agency seems intent with moving forward with further restrictions to CUs' ability to participate in loan participations. [6/19]

This rule provides an exemption to the ability-to-pay requirements for creditors that meet certain designations, loans made under specific programs, certain nonprofit creditor designations, and loans made in connection with certain Federal emergency economic stabilization programs; also adds some provisions to the definition of a qualified mortgage and modifies requirements regarding loan originator compensation in the points and fees calculation. [6/13]

NAFCU’s June CU Industry Trends shows that loan loss reserves, delinquency ratios and net charge-off ratios are now at their lowest point since before the recession; expect the upward trend to continue. [6/13]

Agency emphasizes guides are not substitutes for the underlying rules, but give an overview of them. [6/10]

They may not get the attention, but community banks represent 95 percent of all U.S. banking organizations, they account for almost half of all small loans to businesses and farms, and they are the only banking presence in 629 counties – almost a fifth of all counties – across America. [6/7]

Among other things, procedures call for examiners to look for ethical standards in loan originators, including "character, fitness and financial responsibility" requirements. [6/6]

Survey covering CUs, banks, investment and lending companies and other institutions shows that CU members are the most satisfied with their online and mobile banking services; highly satisfied users are 75% more likely to use more of their financial institution’s products and services. [6/5]