Does NCUA require federal credit unions to have written loan policies?

NCUA (National Credit Union Administration) regulations do require that all federal credit unions have written loan policies. This is important for ensuring that credit unions operate consistently and in compliance with relevant laws and regulations. Written loan policies serve as a framework for making lending decisions, establishing risk management practices, and guiding staff in their responsibilities.

Having these policies in place helps to protect the credit union and its members, as they define loan terms, outline creditworthiness criteria, and detail the process for loan applications and approvals. This institutional approach promotes transparency and fairness in lending, which is vital for fostering trust with members.

In contrast, the other options present situations that do not align with the regulatory requirements set forth by NCUA. Discretionary policies, only applying to large credit unions, or merely providing guidelines without mandatory written policies would not fulfill the NCUA's commitment to uniform governance and member protection across all federal credit unions.