CUSO MBL Rules Arouses Fear and Loathing
While it’s valid for the NCUA to make risk management a priority when it comes to business lending, recent guidance from the regulator could hinder and discourage credit unions and CUSOs running solid programs.
NACUSO expressed those concerns in a recent letter to Larry Fazio, NCUA director of examination and insurance, regarding the agency’s letters to credit unions that deal with the safety and soundness of business lending programs.
Guy Messick, general counsel for NACUSO, reiterated the point by saying credit unions could be at a competitive disadvantage.
“It just removes the ability of credit unions to serve segments of the marketplace that is going to be extremely beneficial to them,” Messick said.