June 18, 2015
CONTACT: Patrick Keefe, NASCUS Communications/703-528-5974, email@example.com
STATEMENT BY LUCY ITO, PRESIDENT AND CEO
NATL. ASSN. OF STATE CREDIT UNION SUPERVISORS (NASCUS)
PROPOSED MEMBER BUSINESS LENDING REGULATION/NCUA
‘STATES MUST HAVE MEANINGFUL ABILITY TO TAILOR MBL RULES’
A goal of streamlining rules and providing flexibility to credit unions is generally good. But, of course, the details of the proposal will have to be scrutinized for a complete picture. NASCUS applauds the proposed rule's recognition of existing state-specific rules and the options for addressing states' authority going forward. We will likely recommend that NCUA still defer to state-specific rules – and insist that, as guidance is developed for state credit unions to follow in eventual implementation, state regulators participate in its creation, a method consistent with a “principles-based” approach to regulation. States must have a meaningful ability to tailor business lending rules specific to their communities.
We also support reviewing insurance rules related to business loans, with an eye to modernization and elimination of unnecessary burden.
There’s no question that member business lending is a complicated topic. We will carefully consider NCUA’s proposal, which is the next step in a long, thoughtful process that has included an ongoing dialogue between NCUA and state regulators. We look forward to continued, constructive discussion during and after the public comment period.
NOTE: States with specific MBL rules include Connecticut, Idaho, Illinois, Maryland, Mississippi, North Carolina, North Dakota, Ohio, Oregon, Texas, Utah, Washington and Wisconsin.
Patrick Keefe, Director of Communications, firstname.lastname@example.org or (703) 528-5974