ALEXANDRIA, Va. (8/28/15)--Credit unions have until Monday to submit their comments on the National Credit Union Administration’s member business lending (MBL) proposal, and are encouraged to do so. CUNA submitted its comment letter on the proposal this week.
The proposal would modernize the NCUA’s MBL regulations, removing almost all requirements not in the Federal Credit Union Act and creating a new category of “commercial loans.” It would remove all requirements that currently require waivers, including the personal guarantee requirement.
CUNA Chief Advocacy Officer Ryan Donovan, during a webinar CUNA hosted on the rule last week, said it is critically important for credit unions to write to the NCUA on the proposal, particularly on how it will affect individual credit unions.
“We generally support the basic direction that they’re headed, but there are some areas that we think could be improved upon, and we hope you’ll bring those issues up in your letters,” Donovan said.
CUNA is particularly interested in whether the rule will allow credit unions more flexibility in making MBLs, as well as the comfort level of credit unions when it comes to examinations under the rule.
The banking industry has submitted dozens of letters to the NCUA calling for the agency to withdraw the proposal, which makes it even more important that credit unions submit “thoughtful, substantive letters from business lending credit unions,” Donovan said.
Comments can be made using PowerComment, or directly to the agency.