WASHINGTON (8/20/15)--It’s not too late to register for CUNA’s webinar today on the National Credit Union Administration’s member business lending (MBL) proposal. Registration is open until just before the start of the webinar, scheduled for 2 p.m. (ET) today.
During the webinar, CUNA Chief Advocacy Officer Ryan Donovan, Chief Policy Officer Bill Hampel and Senior Director of Advocacy Lance Noggle will break down the proposal and offer information for stakeholders crafting their comment letters. Those who register but cannot attend the webinar live can still access a recorded version when it is posted.
The NCUA has received a number of comments from the banking industry, many using form letters to urge the agency to withdraw the proposal. Bankers have also been reaching out to members of Congress, erroneously claiming that the proposal is a way for credit unions to circumvent the statutory MBL cap of 12.25% of assets.
While the proposed rule would overhaul the NCUA's MBL regulation, requirements explicitly stated in the Federal Credit Union Act are untouched. In fact, the NCUA would not be able to make those changes through a rulemaking.
The proposal would create a category of commercial loans for safety and soundness purposes and utilizes the category of MBLs for compliance with the act's limitations on member business lending.
It would also remove all of the specific requirements that currently require waivers, including the personal guarantee requirement, and exempt some credit unions with less than $250 million in assets from the board of director and management responsibility requirements and commercial loan policy requirements.
Credit unions can use PowerComment to submit feedback on the proposal, or submit comments directly to CUNA or the NCUA.