News & Information

Comment on proposals: payday alternative loans, HUD standard

by Christine Henzig, Director of Communications Jul 23, 2018

Be sure your voice is heard as the National Credit Union Administration (NCUA) and the federal Department of Housing and Urban Development (HUD) consider their latest regulatory changes.


NCUA - payday alternative loans

The NCUA is proposing to give federal credit unions (FCUs) an additional option to offer payday alternative loans (PALs). This proposal would not replace the current PALs rule. Instead, an alternative would:

  • modify the minimum and maximum amount of the loans
  • modify the number of loans a member can receive in a rolling six-month period
  • eliminate the minimum membership requirement, and
  • increase the maximum maturity for these loans.

The NCUA is also considering creating a third PALs loan program, which could include different fee structures, loan features, maturities, and loan amounts. 

HUD - Disparate impact discrimination standard

HUD seeks input on possible amendments to its Fair Housing Act's (FHA) “disparate impact” discrimination standard -- practices with an unjustified discriminatory impact, even if those practices were not intentional. HUD asks whether changes are appropriate in the wake of a 2015 U.S. Supreme Court ruling, which held that disparate impact claims can be made under the FHA and discussed standards for, and the constitutional limitations on, such claims. 


We'll need your feedback by August 1 and August 13, respectively, to incorporate your views in a letter The League will submit to both agencies by their comment deadlines. 


Our Open Comment Calls page has all the details on providing input.


The League strongly encourages all credit unions to participate in regulatory advocacy - particularly the comment process - to positively shape their operating environment and remove barriers to serving members.

Wisconsin credit unions come together as a single League to Unite for Good; we remove barriers, increase awareness and foster service excellence. All of these steps help more Americans to see credit unions as their best financial partner and regard their credit union as their primary financial institution. Read more articles in our Unite for Good series.