The NCUA board unanimously voted to extend the effective date of the agency’s new loan participation rule (Parts 701 and 741) from July 25 to Sept. 23, according to a July 3 press release.
Areas changing under the new rule include concentration limits, risk retention requirements and underwriting. Some federally insured credit unions would face difficulties implementing the new rule by July 25. Accordingly, the Board extended the effective date to provide those credit unions with additional time to come into compliance. The NCUA has indicated they will issue guidance prior to the Sept. 23 effective date.
The final rule can be found here.