NCUA Releases MBL Exam Guidance Posted by Association of Vermont Credit Unions on 12:42 PM

Last week, in Letter to Credit Unions 16-CU-11, NCUA published examination guidance on its new member business lending (MBL) regulation that goes into effect in January.

NCUA chairman Rick Metsger stated that the guidance "will help credit unions understand NCUA’s supervisory expectations for sound commercial risk-management practices."

The guidance has been incorporated into NCUA's new online Examiner’s Guide, released in October. The online resource is interactive and provides examiners up-to-date supervisory guidance on key supervisory and regulatory issues.  The format provides easy navigation of topics of interest, keyword content search and easier connection to resources provided by NCUA and other regulatory agencies.

Vermont state-chartered credit unions are also subject to NCUA's member business lending regulation.  Recently, Vermont DFR Regulation B-2012-01 was repealed in favor of requiring compliance with NCUA's member business lending regulation (12 CFR Part 723).  However, a Vermont state chartered credit union wishing to embark in member business lending must still obtain the Department’s written approval before engaging in the business of making such loans.