ALEXANDRIA, Va. — The NCUA Board today approved for a 60-day comment period a proposal to insert a conflict of interest clause into its eligible obligations rule.
The proposal states that an official, employee or immediate family member could not directly or indirectly receive any commission, fee or other compensation in connection with an eligible obligation transaction. Eligible obligations are loans purchased to complete a pool of loans to sell on the secondary market, NCUA Staff Attorney Frank Kressman explained.
There are currently similar provisions in the agency's general lending rule and elsewhere so the change would bring them all in line, he added.
NCUA Board Vice Chairman Rodney Hood said that in these times, where the student lending industry was caught giving quid pro quo to colleges, "This keeps our credit unions sort of above board."
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