Video: Matz Explains Proposed NCUA Securitization Rule Posted by AVCU on 9:59 AM

NCUA Board Chair Debbie Matz explains 2 of 3 newly proposed rules that would give credit unions greater parity with banks when it comes to securitizing assets.

One new rule clarifies that federally insured credit unions are authorized to securitize loans they originate. The second would retain the safe harbor for financial assets transferred in connection with securitizations. In order for such assets to be marketable, NCUA created a safe harbor provision, which assures investors that if the credit union is liquidated or conserved they wouldn't lose their investmen. According to Matz, this is the way the FDIC treats securitizations for banks.