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NCUA Posts CUNA-Sought Exam Guidance for MBL Rule

Mon, Dec 5, 2016

District Of Columbia

CUNA-sought examination guidance on the NCUA's new member business lending (MBL) rules, which go into effect in January, was released today by the agency.

In a Letter to Credit unions (16-CU-11), NCUA Chair Rick Metsger writes that the guidance "elaborates on the principles of sound commercial lending reflected in revised Part 723 (Member Business Loans; Commercial Lending), along with those addressing the statutory cap on member business loans."

"This material will help credit unions understand NCUA’s supervisory expectations for sound commercial risk-management practices," Metsger wrote, adding, " I encourage all credit unions involved in or contemplating commercial lending to review this material and to contact your regional office or state supervisory authority if you have any questions on this subject."

The information has been incorporated into the NCUA's new online Examiner’s Guide, which was unveiled in October. The online document is designed as an interactive tool for examiners that provides up-to-date supervisory guidance on key supervisory and regulatory issues.

The online format is meant for easy navigation to topics of interest, keyword content search and easier connection to resources provided by NCUA and other regulatory agencies. It also includes a feedback button, allowing stakeholders to provide input and suggestions for additional clarification.