Agency extends through next year COVID reg relief
(Dec. 23, 2021) Pandemic-related regulatory relief under rules on loan participations, eligible obligations, and occupancy requirements for certain properties has been extended to year-end 2022, under a temporary final rule given the green light in a unanimous notation vote by the NCUA Board this week.
The agency said the relief measures, originally approved in April 2020, are aimed at helping federally insured credit unions (FICUs) remain operational and able to address economic conditions caused by the COVID-19 pandemic.
This action continues, temporarily:
- the increase in the maximum aggregate amount of loan participations that a FICU may purchase from a single originating lender to the greater of $5 million or 200% of the FICU’s net worth;
- the suspension of limitations on the eligible obligations that a federal credit union (FCU) may purchase and hold; and
- the tolling of the required timeframes for the occupancy or disposition of properties not being used for FCU business or that have been abandoned (given the physical distancing practices necessitated by COVID–19).
The temporary revisions were originally set to expire last year-end, but Dec. 31, 2020, extended through this year. “Due to the continued impact of COVID-19, the Board has decided it is necessary to further extend the effective period of these temporary modifications until Dec. 31, 2022,” the agency stated in its notice for the Federal Register, which was set to publish Wednesday.
The provisions of this rulemaking generally take effect upon publication.
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