Thursday, February 9, 2017

Wisconsin CU Supervisor Denies CU's Request for MBL Waiver and Exception to MBL Cap

The Wisconsin Division of Credit Unions has denied the application of Community First Credit Union (Appleton, WI) for an exception to the aggregate member business loan (MBL) limit and a MBL waiver, most likely dealing with construction and development loans.

The Division of Credit Unions received Community First Credit Union's application for an exception to the MBL cap and MBL waiver on October 25, 2016.

On February 24, 2014, the Wisconsin Credit Unions supervisor approved an exception to the aggregate member business loan (MBL) limit for Community First CU to make member business loans up to 18 percent of the credit union's assets, instead of 12.25 percent of assets.

This application would suggest that the credit union was seeking a higher aggregate MBL lending threshold.

The Division of Credit Unions denied the credit union's request on January 23, 2017.

I filed an open records request to the Wisconsin Credit Union supervisor seeking information related to the denial.

However, the open records request was denied by the Department of Financial Institutions.

In denying my request, the Department of Financial Institutions wrote in an e-mail:

"Pursuant to s. 186.235(7), Stats., the department does not release facts and information obtained in the course of examinations or contained in any report provided by a credit union other than a semiannual or quarterly financial report that is regularly filed with the office of credit unions. The documentation you requested would have contained such information. Pursuant to s. 19.36(1), Stats., these records are specifically exempt from disclosure by state law and are, therefore, exempt from disclosure under s. 19.35(1), Stats. Therefore, the department cannot provide you with the records you have requested."

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