NAFCU urges credit unions to comment on MBL, provides talking points
NAFCU is encouraging member credit unions to submit comment letters to NCUA on its member business lending proposal, and it offers a set of talking points they can use in doing so. Comments are due to NCUA Aug. 31.
The NCUA Board released a proposed rule in June that would remove the current waiver process. Instead of the prescriptive measures in place now, the rule would permit credit union boards to establish a principles-based risk management policy addressing their commercial and business lending activities. If the proposal is made final, credit unions would be examined for their adherence to such principles.
Alicia Nealon, NAFCU’s director of regulatory affairs, emailed members Monday about the talking points (login required) on the proposed rule. She noted that while the proposed rule offers no relief from the current MBL cap – a statutory requirement – it is “as an important step toward regulatory relief,” particularly through its elimination of the need to obtain waivers for some aspects of MBL.
The need for credit unions to provide input is great. Nealon points out that banking trades have their members writing NCUA in droves on the proposed MBL rule changes.continue reading »