NCUA: Exam Guide to Include MBL, Commercial Lending Guidance

As more credit unions move into supporting members through member business lending, they will soon have new examination guidance on NCUA MBL rules, according to a letter released by the agency last week.

In the letter, NCUA Chair Rick Metsger wrote that the guidance “elaborates on the principles of sound commercial lending reflected in revised Part 723 (Member Business Loans; Commercial Lending), along with those addressing the statutory cap on member business loans.”

The revised Part 723, Member Business Loans; Commercial Lending becomes effective on January 1, 2017. The new rule reflects a principles-based approach to regulation, and is designed to provide greater flexibility to credit unions to meet the needs of their members through prudent risk-management practices.

The notice added that credit unions that engage in commercial lending activities “need to have the people, processes, and policies in place to ensure the safety and soundness of their operations.”

The information has been incorporated into the NCUA’s new online Examiner’s Guide, which was unveiled in October. The online document is designed as an interactive tool for examiners that provides up-to-date supervisory guidance on key supervisory and regulatory issues.

Questions about this story? Contact Eric Horvath: 503.350.2222,

Posted in Advocacy News, NCUA, NWCUA.