The big news out of the National Credit Union Administration (NCUA) is that the agency has proposed significant changes to its regulation regarding loan participation - and all the details are available to be read in the Federal Register. There’s a link in the show notes and that same link takes you to where NCUA offers guidelines for submitting comments on the proposal.
Understand, the language of the proposal is murky - it’s written in inside the Beltway lawyerese.
That’s why we asked Kirk Drake, founder of CU2.0 and also chief revenue officer at Quilo, an innovative loan syndication platform, to tell what the NCUA is trying to do here.
Joining him is Quilo co-founder Boris Fuzayloff, a veteran payments pioneer.
The bottomline: the NCUA seems to be trying to update its regs to reflect today’s digital payments world, a place where it suddenly has become easy to put loans out for syndication. What used to take a dozen phone calls now takes a few mouse clicks and this is all very good news for credit unions.,
Just maybe particularly for smaller ones that want to spread risk on a big loan to a member or maybe the institution wants to take small pieces of a big loan that another credit union has up for participation in order to diversify its revenue stream.
Keep that in mind: the chief beneficiaries of the NCUA revisions just may be small credit unions.
For another perspective on the NCUA and the participation revisions listen to this podcast with Henry Meier, onetime general counsel of the New York Credit Union Association.
Hear more on Quilo in this podcast from earlier this year with Quilo co-founder Don Shafer.
Listen up.
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