Feedback on MBL Proposal Sought by NCUA, CUNA

ALEXANDRIA, Va. – Both NCUA and CUNA are inviting credit unions to submit feedback on a proposal that would clarify member business lending rules. The proposal seeks to clarify what would be the minimum capital requirements a federally-insured corporate CU must meet in order to make unsecured MBLs to non-member CUs and corporate CUSOs. NCUA is also aiming to amend the definition of construction or development loans to include loans for renovating or developing property owned by a borrower to produce income. Within that same proposal, NCUA is also asking for feedback on how it can broaden its MBL rule to allow CUs to participate in other government guaranteed loan programs and revise the phrase, “net worth” used in the MBL rule to be consistent with the definition of that phrase found in the Federal Credit Union Act and in NCUA’s prompt corrective action (PCA) regulation. The deadline to submit comments to NCUA is June 20. CUNA is also asking for comment letters, which must be submitted by June 3.