The Missouri Credit Union Association (MCUA) filed a comment letter on August 25, 2014, on the National Credit Union Administration's (NCUA) securitization and safe harbor proposed rules. The proposals would allow federal credit unions—as well as state-chartered credit unions that are permitted by state law—to securitize loans.
As proposed, credit unions would not be allowed to purchase loans generally for the purpose of securitization. However, we are urging the agency to change its position so that loans could be purchased from other credit unions for the purpose of securitization, which could make securitization available to more credit unions. MCUA supports the proposal as a positive step, but in all practicality, few credit unions will likely generate enough loans to justify expending the resources necessary to participate in securitization.