ALEXANDRIA, Va. (6/20/08)--The National Credit Union Administration (NCUA) Board Thursday voted to seek comment on an advance notice of proposed rulemaking on Part 723, Member Business Loans (MBLs). As discussed at the meeting, the agency has received a number of concerns about the rule and suggestions for improving it. The Credit Union National Association (CUNA) has repeatedly sought revisions in the rule in areas that are not dictated by statutory requirements, such as the loan-to-value ratios and the waiver provisions. The issues the board is requiring comments on are whether the MBL rule should be clarified and revised in the following areas:
* Loan-to-value ratio requirements; * Collateral and security requirements; * Credit union service organization involvement in the MBL process; * MBL loan participation; and * Waivers.
NCUA is also seeking comments on any other aspect of the rule. "While we will be reviewing the proposal, the advance notice 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. CUNA's comment letter will be developed with the CUNA Federal Credit Union Subcommittee and CUNA Lending Council. The comment period is 60 days. A CUNA Comment Call on the notice will be available shortly on CUNA's Regulatory Advocacy website.