Primary NCUA Lending Regs

Question 1

Does the NCUA require credit unions to have written loan policies?

Answer 1

Yes written loan policies approved by the board

Question 2

What are the 4 items that are required in a credit unions overdraft policy?

Answer 2

Must set a cap on the amount of overdrafts the credit Union will allow
Set a time frame to repay overdrafts
Limit amount of overdrafts the cu will honor per member
Establish a fee or interest charge to members per overdraft

Question 3

How many days should the time frame to repay overdrafts not exceed?

Answer 3

45 days

Question 4

What is the loan limit set per borrower?

Answer 4

Can not exceed 10% of the credit unions total unimpaired shares and surplus

Question 5

Is there a limit that can be loaned to credit union officials?

Answer 5

Yes 20k plus pledged shares… will have to be reviewed and acted on by the board

Question 6

How can the credit Union provide advanced notice of the statutory lien right to members?

Answer 6

On account opening docs
On loan docs
By email and on credit unions website

Question 7

What is a statutory lien?

Answer 7

A right or claim to members shares and dividends equal to the amount of any outstanding balances owed to the credit union

Question 8

What is the main objective of the credit practices rule?

Answer 8

To prohibit the use of certain contract terms that are not necessary to protect creditors against losses and deprived consumers of protections provided by standard laws

Question 9

How does the credit practice rule define pyramiding of late charges?

Answer 9

The assessment of multiple late charges based on a single late payment that is subsequently paid

Question 10

What does this rule require a credit Union to disclose to a co-signer

Answer 10

Credit Union must fully inform the co signed of the nature and extent of potential liability