WASHINGTON (8/6/15)--CUNA will present a webinar Aug. 20 on the National Credit Union Administration’s member business lending (MBL) proposed rule, which is open for comment through Aug. 31.

The free webinar will be hosted by CUNA Chief Advocacy Officer Ryan Donovan, Chief Policy Officer Bill Hampel and Senior Director of Advocacy Lance Noggle.

The NCUA proposed the rule at its June board meeting, and it would remove almost all MBL requirements not present in the Federal Credit Union Act. It would create a new category of “commercial” loans for safety and soundness purposes and use the category of MBLs for compliance with the Federal Credit Union Act’s limitations on member business lending.

CUNA is accepting comments on the proposal through Aug. 24, and is seeking feedback on the following questions:

• Do you believe that the switch from a prescriptive rule to a principle-based rule will provide you more flexibility in making business loans?  Why or why not?
   
• Will the adjustments in the calculations of loans that count for the MBL statutory cap assist your credit union in making more MBLs?
   
• Does the proposed rule provide you with sufficient clarity to know what will be required in your policies/procedures?  How will the proposed rule affect your current lending practices/policies?
   
• Are you comfortable that your examiner will be able to examine your portfolio and policies utilizing a principle-based rule?
   
• Does the removal of the waiver process benefit your MBL program?
   
• Does the distinction between commercial loans and member business loans benefit your MBL program?
   
• Will your credit union need to create a credit risk rating system or credit grading system in order to comply with the proposed rule?

CUNA has also provided additional resources on the proposal, including a detailed summary, and is encouraging credit unions to submit their comments to the NCUA via PowerComment.

The webinar is scheduled from 1 to 2 p.m. (ET) Aug. 20, and registration is currently open.