NCUA’s revised member business lending (MBL) rule has been in effect for more than 6 months now, and according to the agency, it has received a number of questions about the rule and its implementation. In this quarter’s NCUA Report, the agency tackled some of the most frequently asked questions.
Chief among those questions is: What are NCUA’s expectations under the new MBL and commercial loan rule?
The answer: NCUA expects credit unions to offer commercial loans in a safe and sound manner and structured appropriately for the member’s needs and within the member’s financial abilities.
The new rule requires active oversight by senior managers and the board, but also extends flexibility to credit unions to establish policies and program controls instead of prescriptive regulatory requirements.
The rule now takes a more principles-based approach to managing a commercial loan program and allows management to tailor appropriate risk-management practices to suit their individual circumstances.
The post Compliance: NCUA releases MBL FAQs to aid implementation appeared first on CUInsight.
June 12, 2017 at 05:53PM
from John
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