May 15, 2019

Business loan regulations explained in new Compliance Blog

Compliance BlogIn the latest Compliance Blog post published this morning, NAFCU's Elizabeth LaBerge further explains lending regulations' applicability to business loans in a follow up to a previous post on regulations that apply to business accounts.

LaBerge, NAFCU's senior regulatory compliance counsel, notes that most consumer protection rules do not apply to loans that are held by businesses or an individual when created for business purposes. She also stresses the importance of determining whether the individual or business will serve as the borrower on the loan.

"Understanding whether the individual or legal entity will serve as the borrower on the loan, as well as the loan's purpose, can be important to determining the applicability of a rule, as well as the credit union's ability to make the loan under its internal policies and field of membership considerations," wrote LaBerge.

LaBerge provides in-depth analyses on several key regulations, including:

  • NCUA's lending regulation;
  • Regulation B;
  • Fair Housing Act;
  • FCRA/Regulation V;
  • Truth in Lending;
  • RESPA/Regulation X;
  • HMDA/Regulation C;
  • Regulation P;
  • E-Sign Act;
  • BSA and OFAC; and
  • state laws and other considerations.

For more on this topic and the applicability of the regulations mentioned, read LaBerge's full blog here. Those interested can sign up to receive new NAFCU Compliance Blogs posts in their inbox every Monday, Wednesday and Friday here.