WASHINGTON (6/27/08)—Credit unions have until August 25 to respond to a recent National Credit Union Administration (NCUA) request for comments on proposed changes to Part 723 of its member business lending (MBL) rule. At its June 19 meeting, the NCUA acknowledged it has received a number of communications voicing concerns about the current rule. The Credit Union National Association (CUNA), for instance, has repeatedly sought revisions in areas that are not dictated by statutory requirements, such as loan-to-value ratios and waiver provisions. The NCUA is seeking comment on whether the following sections of its rule should be revised and clarified:
* Loan-to-value ratio requirements; * Collateral and security requirements; * Credit union service organization involvement in the MBL process; * MBL loan participation; and * Waivers.
The NCUA is also seeking comments on any other aspect of the rule. "While we are reviewing the proposal, the NCUA’s action represents the kind of regulatory approach that is positive and much needed in the current climate of overregulation," said CUNA's Deputy General Counsel Mary Dunn about the agency’s advanced notice of proposed rulemaking. CUNA is developing a comment letter with the CUNA Federal Credit Union Subcommittee and CUNA Lending Council. A CUNA Comment Call on the notice will be available shortly on CUNA's Regulatory Advocacy website. Use the resource link below for more information the NCUA request for comment.