The NCUA Board currently has a proposal out for comment regarding its MBL regulations.
When Congress in 1998 put in place the statutory cap on member business loans, it provided an exception to credit unions that had a history of primarily making business loans.
NCUA's current position is that unless a credit union's history of making MBLs was already established “as of” the date of
the passage of the Credit Union Membership Access Act of 1998, a credit union could not take advantage of this exception.
However, McWatters believes that based upon "reasonable" legal analysis NCUA has the discretion to revisit this exception. Of course, it is his interpretation of reasonable.
McWatters wrote:
"I welcome this review of the MBL proposal and urge all interested credit union officials not to hold back in recommending changes to the rule that will improve MBL operations, consistent with Federal Credit Union Act and safety and soundness. This includes looking at the lending history exception."
It is troubling that McWatters introduced this idea of revisiting the lending history exception during the final days of the comment period on NCUA's proposed MBL rule, especially when this issue was not part of the original proposal.
This looks like the next avenue that NCUA will use to exclude more credit unions from the statutory MBL cap.
Maybe that was "the intent." However, the Senators "bought and paid for by the ABA" forgot to insert a form of the verb "to be" before "chartered for the purpose of making member business loans" into the FCU Act. Since we know what the "meaning of is is," FCUs should be able to change their Bylaws to show they are chartered for that purpose and get out of the 12.25% asset cap.
ReplyDeleteAfter all, what was the AT&T Family FCU case about? A single "s" that was not after "group."
another tax dodging credit union heard from. love the "mission" mantra when really its about not paying federal income tax.
ReplyDelete