The NCUA filed a brief Wednesday to dismiss the lawsuit lodged by the Independent Community Bankers of America against the agency and its member business lending rule, which goes into effect Jan. 1. CUNA and the National Association of Federal Credit Unions (NAFCU) issued a joint statement supporting the agency.
“As our two organizations have stated, the NCUA acted well within its authority when it issued its member business lending rule. Submitting a motion to dismiss this baseless attack is the logical next step for the agency in defending that right. For our part, the CUNA/league system and NAFCU will continue to work collaboratively to defend the NCUA’s authority to interpret the Federal Credit Union Act. Ensuring small businesses have access to much-needed capital remains a top priority for the credit union industry,” said Jim Nussle, president/CEO of CUNA and Dan Berger, president/CEO of NAFCU.
CUNA strongly backs NCUA’s modernization of MBL rules and has been working with the NCUA to gain more guidance for credit unions before the rule goes into effect. CUNA seeks guidance on such issues as how the new standards will be enforced and expects supervisory guidance to be issued within the next two months.