WASHINGTON (3/15/16)-- The National Credit Union Administration (NCUA) released a video resource for credit unions on its member business lending (MBL) rule in concert with the publication of that rule in Monday's Federal Register.
The video toolkit highlights how member business lending, managed correctly, can benefit credit unions, their members and their communities.
The MBL rule was adopted in February, and the bulk of it is set to go into effect on Jan. 1, 2017. The exception is a provision that waives a personal guarantee requirement. The Credit Union National Association (CUNA) worked closely with the NCUA to ensure an accelerated effective date for that waiver--set at 60 days after the rule's publication in the Federal Register, which is May 13.
CUNA has noted that the accelerated waiver will serve to give faster regulatory relief to credit unions from the loan guarantee burden, while the 2017 effective date gives them needed time to implement changes, under the new rule, in their own MBL programs.
CUNA has praised the NCUA’s MBL rule modernizations for stripping all restrictions not specifically laid out in the Federal Credit Union Act. The result, CUNA believes, gives credit unions greater flexibility and autonomy in the way they offer member business loans.
Other changes in the final rule include: