ALEXANDRIA, Va. – NCUA said yesterday that a federal credit union may recoup waived settlement costs and fees associated with making a member business loan without it being considered a prohibited prepayment penalty.

In a new legal opinion posted yesterday, NCUA said the recoupment period should be disclosed to the borrower and should be no longer that "that reasonably necessary to offset expenses associated with waived fees."

NCUA bars federal credit unions from charging prepayment penalties for all types of loans.

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