WASHINGTON, DC (February 11, 2016) — National Association of Federal Credit Unions (NAFCU) President and CEO Dan Berger issued the following statement in response to the National Credit Union Administration’s (NCUA) announcement that it will vote on a final, revised member business lending rule during the agency’s open board meeting on Feb. 18.
“Given today’s current small business environment, NAFCU and our members appreciate NCUA heeding our call to move away from prescriptive regulatory requirements in favor of general principles that will provide credit unions with greater flexibility to better serve their small business members and communities at large,” said Berger.
NCUA has proposed to remove the member business lending prescriptive underwriting criteria and personal guarantee requirements, eliminating the current waiver process. A credit union would then be able to set its commercial underwriting standards independently, commensurate with its own business model and risk appetite.
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.
NAFCU continues to advocate for broader changes in MBL rules through legislation that would allow an exemption from the MBL cap for more credit unions.
Also listed on the agenda for next week is the National Credit Union Share Insurance Fund’s quarterly report.
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.
