NCUA Board proposes elimination of MBL waiver process

first_imgThe NCUA Board, voting 3-0, issued a proposed rule on Thursday that would eliminate the member business lending waiver process and would allow credit unions to decide for themselves if a borrower should be exempt from a personal guarantee.NCUA Board Chairman Debbie Matz called the proposal “the right approach at the right time.” She continued, “Credit unions know their members better than we do, and this modernized business lending rule reflects that reality.”NAFCU Director of Regulatory Affairs Alicia Nealon said the proposal is a good first step. “NAFCU has long advocated for MBL reform, and we appreciate NCUA’s efforts to  remove prescriptive underwriting criteria and personal guarantee requirements. 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.”NCUA said that if the rule is adopted, the agency would conduct training for examiners with a one-time cost of $1.9 million in advance of the rule’s implementation. continue reading » 1SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more