MADISON, Wis.-NCUA has issued a Letter to Credit Unions regarding multi-featured open-end lending (MFOEL) and blended lending, and one person is predicting that the number of credit unions using open-end lending will continue to decline as a result.

NCUA's Letter, dated July 20, serves to clarify regulations on MFOEL, which were originally issued in September 2010 by the Federal Reserve Board (which later transferred that authority to the Consumer Financial Protection Bureau). Among other things, the guidance provides further details regarding limitations on the amount of information a credit union can require at the time of an advance request, such as new credit score verification, new applications or other underwriting.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.