Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

NCUA Legal opinion on lending experience rule
ALEXANDRIA, Va. (2/20/08)—Credit unions may use different approaches to satisfy a federal requirement that it retain an employee with at least two years experience before launching a member business lending (MBL) program, according to a recent National Credit Union Administration (NCUA) legal opinion letter. The opinion letter was inspired by an inquiry asking whether a credit union must always use the services of a third-party underwriter to satisfy the NCUA’s member business lending (MBL) rule’s two-years-of-direct-experience requirement. NCUA Associate General Counsel Sheila Albin responded that while a credit union may use the services of an outside party, it is not required to do so. It also may use the direct experience of its own employees. Further, wrote Albin, a credit union is not required to hire an individual who has the requisite experience at the time of hiring. It may satisfy the direct experience requirement instead with an employee who has developed the requisite experience over time. However, if a credit union chooses to take the latter course of action, it is subject to certain regulatory limitations. For instance, to qualify an existing employee must be familiar with such things as the proper underwriting, analysis, and origination of MBLs in order to understand their complexity and risk exposure. Use the resource link below to read the NCUA’s entire opinion letter.
Other Resources

RSS print
News Now LiveWire
For the last 75 years, even in the most difficult of times, Mill Town #CU has been there for the community it serves. Read #NewsNow Tues.
3 hours ago
The 1st vid shows how consumer can become victim and, advice to those who think they've been targeted.
7 hours ago
.@TheNCUA has released two videos designed to raise awareness of elder financial abuse.
7 hours ago
Celebrate #100MM with @MDDCCUA1 at Orioles v Blue Jays tonight at Camden Yards
8 hours ago
The At Home In Lawrence mortgage program from @MetroCU is designed to help revitalize Lawrence, Mass.
8 hours ago