WASHINGTON, DC (September 1, 2015) — NAFCU President and CEO Dan Berger addressed the National Credit Union Administration (NCUA) in a letter regarding the proposed rulemaking on a federally insured credit union’s (FICU) member business lending portfolio and general commercial lending activities.
In the letter, Berger expresses the association’s appreciation for the proposed member business lending rule that eliminates the waiver process and provides much-needed regulatory relief.
“NAFCU has found that small businesses are struggling to find access to capital and liquidity from other lenders, and are turning to credit unions for help,” Berger writes. “Credit unions want to provide such funding, in a safe and sound manner, but are arbitrarily limited by NCUA’s existing regulation.”
He continues, “NAFCU and our members would like to express our appreciation to NCUA for engaging in numerous discussions with NAFCU, credit unions and industry representatives on how to amend Part 723 to achieve needed flexibility, while maintaining the safety and soundness of the industry.”
Berger also emphasizes NAFCU’s continued advocacy for broader changes in MBL rules through legislation that would allow an exemption from the MBL cap for more credit unions. He thanks NCUA Chairman Debbie Matz for her support of the “Credit Union Residential Loan Parity Act,” and the “Credit Union Small Business Jobs Creation Act,” and urges NCUA to support legislation that would exempt veterans from the MBL cap (H.R. 1133).
Further, Berger notes that NCUA has the full statutory authority to make this rulemaking because the changes only apply to non-statutorily mandated requirements, instead of the statutory MBL cap. He also makes additional recommendations relating to the rule, including that NCUA adopt a 12-month implementation period for the rule.
To read the full letter, click here.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
