NCUA Asset
Securitization & Safe Harbor Proposals

· NCUA is proposing this rule to give credit unions access to another source of liquidity to make loans.

· In conjunction with the proposed rule on securitization, NCUA also issued a proposal that would create a safe harbor for assets transferred by a credit union in connection with a securitization or a participation. The proposal is substantively identical to an FDIC safe harbor for bank-issued securities.

· The safe harbor is being proposed to provide incentives for investors to purchase credit union securitized loans, as there is a concern that there may not be much appetite for credit union securitized assets absent a safe harbor.

· Click here for the asset securitization proposal and here for the safe harbor proposal as published in the Federal Register.

· NCUA is accepting comments on all aspects of the proposals until August 25; please send comments to CUNA staff by August 1.