NAFCU Statement on NCUA Board Proposal To Eliminate MBL Waiver Process

 

FOR IMMEDIATE RELEASE

NAFCU Statement on NCUA Board Proposal To Eliminate MBL Waiver Process

Washington (June 18, 2015) - National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Alicia Nealon issued the following statement regarding today’s National Credit Union Administration (NCUA) Board meeting, during which the board proposed to eliminate the member business lending (MBL) waiver process. The board also announced that it would look at allowing credit unions to decide for themselves if a borrower should be exempt from a personal guarantee.    

“NAFCU has long advocated for MBL reform, and we appreciate NCUA’s efforts to remove prescriptive underwriting criteria and personal guarantee requirements,” said Nealon. “While we welcome many aspects of this proposal, NAFCU is concerned with the agency’s initial estimates of how much NCUA will spend to implement the rule. We support necessary and thorough examiner training, but we urge NCUA to keep it within the agency’s current budget and look for all cost savings opportunities.” 

NAFCU will be surveying our members about their perspectives and insights on the proposal.

NAFCU is also pressing for a broader change in the MBL rules that would allow an exemption from the MBL cap for more credit unions.

NCUA voted to keep the loan rate ceiling at 18 percent, a move that NAFCU also urged.

The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public. 

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Contact: Patty Briotta | 703-842-2820 | pbriotta@nafcu.org