Small Business Lending Data Collection Under the Equal Credit Opportunity Act

On September 1, 2021, the CFPB published proposed rulemaking on small business lending data collection. The proposal would require covered financial institutions to annually collect and report to the Bureau data on credit applications for small businesses, including those that are owned by women or minorities. The proposed rule is 918 pages long. The CFPB also provides a table of … Read More

CFPB Beta Launch of HMDA Platform

From the CFPB – The Bureau is pleased to announce the beta launch of the new HMDA Platform. The main objective of the beta release is to provide financial institutions an opportunity to become familiar with the HMDA Platform and, in particular, determine whether their sample LAR data complies with the reporting requirements outlined in the Filing Instructions Guide for … Read More

OCC Retail Lending Booklet

The OCC has issued Bulletin 2017-15 to introduce a new “Retail Lending” booklet for the Comptroller’s Handbook. This new booklet, part of the “Safety and Soundness” category of the Handbook, discusses the risks associated with retail lending and provides a framework for evaluating retail credit risk management activities. This booklet supplements the core assessment sections of the “Large Bank Supervision,” … Read More

FDIC Supervisory Insights – Credit Risk Trends

The FDIC’s Winter 2016 Supervisory Insights includes an article titled Credit Risk Trends and Supervisory Expectation Highlights, that identifies credit risk trends in commercial real estate along with agriculture, and oil and gas-related lending.  The article contains good  information regarding the conditions and trends in each of these areas, and is a recommended read for the policy makers in your … Read More

Change to Secretary of State Corporate Formation Documents

In case you missed it… As a result of a change in Washington’s Business Code (RCW 23.95), the DFI sent an e-mail to Washington State credit union CEOs regarding corporate formation documents filed with the Secretary of State’s office. The email was: Dear CEOs, New laws (RCW 23.95) will soon take effect with regard to the Office of Secretary of … Read More

Legal Opinion Letter 16-0604 – MBL Reporting

On August 9, the NCUA issued a legal opinion letter regarding the classification of business loans.  Essentially, when a single closed-end member business loan is paid down below the $50,000 threshold, the credit union no longer needs to classify the loan as a MBL.  Nor does the credit union include the loan when calculating the credit union’s statutory MBL limit. … Read More

SBA Proposed Rule

The Small Business Administration is issuing a proposed rule amending several regulations relating to the 7(a) and 504 loan programs used by banks. The proposed changes are intended to streamline SBA processes and update or remove outdated provisions – for example, by replacing the Certified Lenders Program with SBA “delegated authority” criteria. The proposed changes include redefining cooperative businesses as … Read More

Rulemaking on Amendments to the Member Business Loan Rule

The DCU released Bulletin B-16-06, announcing that they intend to modernize the state MBL rule (Chapter 208-406 WAC) and provide similar authority as authorized for federal chartered credit unions. Rulemaking will begin in April, with meetings held over the next several months.  The tentative schedule includes meetings through August. You can attend rulemaking in person or by teleconference.  The DCU … Read More

Final Member Business Loan Rule

The Final MBL Rule provides credit unions making business loans with greater flexibility and more autonomy, shifting the rule’s focus from the current prescriptive approach to a more principles-based methodology that emphasizes sound risk management practices for business lending. The final Rule eliminates most of the prescriptive lending limits and their corresponding waiver provisions. The also distinguishes the policy and … Read More

Statement on Prudent Risk Management for Commercial Real Estate Lending

The Federal Reserve, the FDIC, and the OCC jointly issued this Statement to remind financial institutions of existing regulatory guidance on prudent risk management practices for commercial real estate (CRE) lending activity through economic cycles.  The NCUA was not part of the agencies that issued the statement, but may follow other agencies guidelines when conducting audits. The Statement includes “Historical … Read More