The NCUA Board approved the rule that would eliminate the use of credit ratings as a way to determine investment creditworthiness. This rule was brought into play after credit ratings plummeted in today’s economy.
Credit Unions will now consider several factors to determine eligibility for investments. The NCUA will provide guidance and advice.
This new rule is one of many that the NCUA voted on. They also approved the Temporary Corporate Credit Union Stabilization Fund, which would decrease the cost of outside consultants and add five full time positions.
The credit ratings rule is new and credit unions will be in talks with the NCUA on amending the rule depending on subjective standards and whether an investment is creditworthy. It all comes down to the credit union itself and what is best for their members.
For more information on investments, contact the professionals of Valley Federal Credit Union at their Brownsville branch by calling (956) 546-3108, or their Harlingen branch at (956) 425-5668.