ARLINGTON, Va.–In a comment letter to NCUA, NAFCU told the agency it appreciates the changes that are being proposed regarding member business loans, but also suggests NCUA go even further.
The letter, submitted as comment in response to NCUA’s proposal related to Part 723 of its rules, includes praise for the elimination of the current waiver process and for the regulatory relief being provided.
“NAFCU has found that small businesses are struggling to find access to capital and liquidity from other lenders, and are turning to credit unions for help,” wrote NAFCU CEO Dan Berger in the comment letter. “Credit unions want to provide such funding, in a safe and sound manner, but are arbitrarily limited by NCUA’s existing regulation…NAFCU and our members would like to express our appreciation to NCUA for engaging in numerous discussions with NAFCU, credit unions and industry representatives on how to amend Part 723 to achieve needed flexibility, while maintaining the safety and soundness of the industry.”
Berger also emphasizes NAFCU’s continued advocacy for broader changes in MBL rules through legislation that would allow an exemption from the MBL cap for more credit unions. He urged NCUA to support legislation that would exempt veterans from the MBL cap (HR 1133).
Berger reiterated that it is NAFCU’s position that NCUA has the full statutory authority to make this rulemaking because the changes only apply to non-statutorily mandated requirements, instead of the statutory MBL cap. In the letter Berger also makes additional recommendations relating to the rule, including that NCUA adopt a 12-month implementation period for the rule.
A copy of the comment letter can be found in CUToday.info’s Open Vault here.