NCUA Letter 16-CU-11 Member Business Loans Guidance

NCUA released guidance on the new member business lending (MBL) rules, which go into effect in January.  The guidance is incorporated into the NCUA’s new online Examiner’s Guide. Letter to credit unions 16-CU-11 states “Guidance that elaborates on the principles of sound commercial lending reflected in revised Part 723, along with those addressing the statutory cap on member business loans, … 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

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