WASHINGTON (8/21/15)--It is critically important for credit unions to make their voices heard regarding the National Credit Union Administration’s member business lending (MBL) proposal, CUNA told its members during a webinar Thursday.
Chief Advocacy Officer Ryan Donovan, Chief Policy Officer Bill Hampel and Senior Director of Advocacy Lance Noggle reiterated that credit unions should bring any questions or suggestions regarding the proposal to the agency before comments are due Aug. 31.
“We hope everyone will take the time to write the NCUA on how what they’ve proposed will affect your credit union,” Donovan said. “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, as we will.”
He added that CUNA is engaging with stakeholders on the grassroots level as well as contacting members of Congress, particularly those who have been involved with MBL legislation, to weigh in.
“We really need thoughtful, substantive letters from business lending credit unions if we’re going to see this proposal finalized in a manner similar to what has been proposed,” 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 proposal would remove almost all MBL requirements not in the Federal Credit Union Act. It would create a category of commercial loans for safety and soundness purposes, while using the MBL category of loans for compliance with the act.
“The NCUA should get credit for doing all they can to make sure that they’re applying the MBL cap as stated in the law, but no more than that,” Hampel said. “Under the previous rule, they were perhaps doing a bit more.”
An archived recording of the webinar will be available for those who registered within the next few days.
Comments on the proposal can be made using PowerComment, or other methods.