A proposed rule that would allow credit unions to securitize consumer loans needs some fine tuning, according to the industry’s trade group.

The National Association of Federal Credit Unions (NAFCU) published a letter Monday saying that it strongly supports the National Credit Union Administration’s proposed rule on securitization. However the trade group believes that the regulator shouldn’t make the regulation “overburdensome” with the inclusion of “unnecessary provisions related to investors at the expense of ensuring that credit unions may serve the best interests of their members through the use of securitizations.”

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