The National Credit Union Administration (NCUA) Board recently approved a proposed rule to amend current regulations to permit federal credit unions to purchase mortgage servicing rights from other federally insured credit unions.

Under the proposed rule, eligible federal credit unions may purchase the mortgage servicing rights of loans, provided these investments are consistent with safety and soundness, and are in accordance with its risk management policies and procedures that address investments and servicing practices.

Comments on the proposed rule must be received within 30 days of publication in the Federal Register.

Doeren Mayhew’s Financial Institutions Group will keep you updated as the rule progresses.