FOR IMMEDIATE RELEASE
Feb. 18, 2016
COMMENT BY NASCUS PRESIDENT AND CEO LUCY ITO
ON FINAL MBL RULE ADOPTED BY NCUA BOARD
Spirit of MBL rule permits state innovation – but proof is in the pudding
As adopted, the spirit of the rule permits state innovation in adopting their own business lending rules. But the proof is in the pudding -- our concern is that the ultimate interpretation of the rule stays consistent with the intention expressed at the table today during the NCUA Board’s discussion.
In any event: Allowing states to adopt their own state-specific MBL rules in the future is a key provision that NASCUS sought in the final rule. We also recommended that boards of credit unions offering business loans be required to approve a comprehensive, written commercial loan policy – which the board also included in the final rule.
NASCUS believes it is crucial that any financial institution engaging in commercial lending understand the nature of the differences between consumer and commercial credit. Now, the emphasis turns to engaging the credit union system about this new, “principles-based” approach to commercial lending. NASCUS will be working with the state system to ensure that state regulators and federally insured, state-chartered credit unions are well-prepared to embrace this new approach.
Patrick Keefe, Vice President, Communications, email@example.com or (703) 528-5974