NEW BERLIN, Wis.—The Wisconsin Office of Credit Unions has approved a request from $3.2-billion Landmark Credit Union here for an exception to the aggregate member business loan cap, Keith Leggett reported.
The statutory aggregate MBL cap is 12.25% of assets.
“But, according to the Office of Credit Unions' Activity Report, Landmark Credit Union was granted on March 31, 2017, an exception to make member business loans up to 18% of its assets,” stated Leggett, the former senior vice president and senior economist at the ABA, on his Credit Union Watch blog. “This is the second exception granted to Landmark Credit Union with regard to the MBL cap.”
Leggett noted that On April 8, 2015, the Office of Credit Unions approved Landmark's first exception, allowing the CU to grant MBLs up to 15% of its assets. As of December 31, 2016, Landmark had an outstanding MBL to asset ratio of 11.92%, Leggett stated.
Leggett said an open records request seeking documents related to the approval of the MBL cap exception was denied by the state regulator.