NCUA Board to vote final MBL rule today

The NCUA Board today will vote on a final, revised member business lending rule that is expected to remove prescriptive underwriting criteria and personal guarantee requirements, thus eliminating the current waiver process.

If the rule is approved as proposed, a credit union would be able to set its commercial underwriting standards independently, commensurate with its own business model and risk appetite.

“Given the current environment for today’s small businesses, NAFCU and our members appreciate NCUA heeding our call to move away from prescriptive regulatory requirements in favor of general principles that will allow credit unions to be more flexible so they can better serve their member small businesses and communities at large,” said NAFCU President and CEO Dan Berger.

In NAFCU’s comment letter last August to NCUA, Berger wrote in favor of the proposal, noting that eliminating the waiver process would provide much-needed regulatory relief to the credit union industry.

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