Now Archived: Washington State Regulator Provides Valuable Guidance in NCUA National MBL Webinar

January 8, 2010 — Linda Jekel, director of credit unions for the state of Washington, served as part of the faculty with the National Credit Union Administration (NCUA) for a national webinar on regulators' perspectives on member business lending (MBL). This webinar is now archived and available for viewing at this link.

The webinar, held on November 18, provided credit unions with resources and best practices in member business lending from the regulator's view, focusing on sound due diligence and expertise.

Director Jekel presented information on the importance of a risk-rating system for MBLs; this system should be tailored and credit union-specific. She also stressed that research and planning is critical to beginning or expanding a credit union MBL program, as well as proper reporting to the board and management. During her remarks, Jekel outlined the experience levels necessary and the structures of a MBL staff.

While Jekel provided the state regulator perspective on MBL, she added that state and federal regulators are on the same page regarding their expectations and concerns about member business lending. Jekel and Board member Hyland both emphasized that in order to do member business lending right, a credit union must have the appropriate risk management, expertise and due diligence. Hyland recommended advancing "slowly" and "step-by-step" when starting or expanding a member business lending program.

Jekel was joined by NCUA Board member Gigi Hyland for the presentation as well as Erika Eastep and Linda Vick from NCUA.