Removing Barriers Blog

Comments Needed on NCUA's MBL Proposal
Posted August 14, 2015 by CUNA Advocacy

CUNA continues to encourage credit unions to file comments and encourage members of Congress to file comments on the NCUA’s member business lending proposed rule.  This rule will completely overhaul the regulation and change the Member Business Landscaping for credit unions.  Credit unions should study the rule as the rule represents a major shift from a prescriptive approach to a more principle-based methodology in its approach to the rule. While many of the requirements not in the Federal Credit Union Act are being removed, other new concepts such as requiring a “Credit Risk Rating System” in the MBL Policy, are new. A detailed summary of the rule can be found here.  In addition, CUNA is presenting a webinar on August 20 on the MBL rule, hosted by CUNA Chief Advocacy Officer Ryan Donovan, Chief Policy Bill Hampel and Senior Director of Advocacy Lance Noggle.  To register for this free webinar, please click here.

The banking community has become active in filing comment letters with the NCUA in advance of the deadline in opposition to the changes.  Many of the letters argue that the NCUA is engaging in regulatory overreach and that credit unions lack the expertise to increase their business loan portfolios.  We encourage credit unions to let the NCUA know the fallacy of the banker’s arguments and otherwise express your opinion on the rule.

CUNA is presently developing its comment letter and we encourage credit unions to provide feedback to us by August 24, as we anticipate submitting our letter in advance of the August 31 deadline for comments.  If you have questions or feedback regarding the proposal, please do not hesitate to contact Lance Noggle.