Tuesday, October 6, 2015

Fryzel: Don't Eliminate MBL Personal Guarantee Requirement

Former National Credit Union Administration (NCUA) Board member Michael Fryzel is urging the NCUA Board to retain the member business loan (MBL) personal guarantee requirement.

In a Credit Union Times opinion piece, Fryzel wrote: "The one change that is proposed, which I feel would be detrimental to credit union operations and not condone a safe and sound best business practice, is the elimination of the personal guarantee for business loans."

While Fryzel acknowledges that the personal guarantee may inhibit the growth of business loans at credit unions, he also notes that it raises questions about loan quality, member responsibility, and protection from loss.

Read the opinion.

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