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CUBG webcast urges prudent MBL policies
PORTLAND, Ore. (6/1/12)--Eighty attendees from 73 credit unions recently attended a free webinar hosted by CU Business Group (CUBG) to explain the credit union service organization's annual revisions its business loan policy template.

The webinar also included an update on the credit presentation CUBG underwriters use in reviewing member business loans (MBL).

CUBG updates its policy template annually and distributes it exclusively to member credit unions. The annual revision is intended to help credit unions incorporate the most recent regulatory changes and best practices CUBG has learned from its experience in credit union MBL.

The major revision made to this year's policy is a revamp of the risk-rating system to segregate commercial real estate income-property lending from commercial and industrial lending, creating a better match of cash flows to the risk rating. Other revisions include additional guidance on concentrations and the desired loan mix for business lending, and more detailed language on modifications, troubled-debt restructuring, and loan-loss reserves.

CUBG updated its credit presentation to focus more on balance sheet analysis and include more detail on business history, marketplace and management information, risk monitoring and loan exit strategies.

"We're really upping the standards for credit unions in business lending," said Lary Middleman, CUBG president/CEO. "It's not just about doing a simple income property loan and calling it good. Credit unions are looking to diversify, to get into commercial and industrial loans, and into full deposit relationships. This updated credit presentation allows us to accommodate these types of requests."

CUBG provides business lending, deposit and consulting services to credit unions nationwide.


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