PRESS RELEASE

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.

Information Contact:
Patrick Keefe, Vice President, Communications, pkeefe@nascus.org or (703) 528-5974

The National Association of State Credit Union Supervisors (NASCUS) is the primary resource and voice of the state governmental agencies that charter, regulate and examine the nation’s state-chartered credit unions. NASCUS membership is made up of state-chartered credit unions, state regulators and other supporters of the state credit union system. NASCUS is the only organization dedicated to the defense and promotion of the state credit union charter and the autonomy of state credit union regulatory agencies.