Tuesday, January 20, 2015

NCUA Chairman to Propose Abolishing All Non-statutory MBL Limits

Bankers will see more intense competition from credit unions over terms and conditions on business loans beginning later thsi year or early next year.

National Credit Union Administration (NCUA) Chairman Debbie Matz stated that this year NCUA will propose eliminating all non-statutory limits associated with the agency's member business loan (MBL) rule.

Chairman Matz intends to end the requirement for personal guarantees, to remove loan-to-value ratio requirements, and to abolish unnecessary restrictions on construction and land development loans.

I wonder if she will also eliminate the requirement that business lenders have at least two years experience with the type of lending the credit union will be engaging in.

Once the rule is proposed, I will provide more information.

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