ARLINGTON, Va.—Credit unions will be briefed on the NCUA’s recently finalized member business lending rule by Larry Fazio, NCUA director of Examination and Insurance, during a webcast presented free March 3 by the NAFCU.
The webcast, NCUA's MBL Changes Explained: What You Need to Know, will broadcast live from 2-3:30 p.m. ET from the association’s headquarters here.
“Credit union professionals looking to boost their knowledge of NCUA’s recent changes to its member business lending rule should sign up for this webcast,” said Alicia Nealon, NAFCU’s director of regulatory affairs and moderator of the webcast. “This is a great opportunity for credit unions to solidify their understanding of how the changes will impact their commercial lending operations.”
The NCUA board recently voted 3-0 to approve a final MBL rule that, effective Jan. 1, 2017, eliminates the waiver process. Also, 60 days after the rule’s publication in the Federal Register, the personal guarantee requirement is eliminated.
At the conclusion of the webcast, credit union viewers will understand the details of the final rule and how it will impact them. The webcast will also address some of the key areas examiners will focus on when reviewing commercial lending policies and infrastructure.
NCUA’s final rule will allow credit unions to independently develop commercial underwriting standards commensurate with their own risk appetites. The changes in the final rule:
- Update the current requirements and limitations on collateral, security, equity and loans;
- Remove explicit loan-to-value limits;
- Lift limits on construction and development loans; and
- Clarify that non-member-loan participations do not count against the statutory MBL cap.
NCUA said it is working on a Final Regulation on the MBL rule and will send it to members in the near future.
While the webcast is provided free of charge to the association’s members and non-members, registration is required.