NCUA Proposal to Increase Commercial Lending

The National Credit Union Administration (NCUA) released a proposal altering the requirements for member business loans (MBL). NAR submitted comments in support of the proposal, citing the need for increased lending for commercial real estate and to small businesses.
The proposal would allow each credit union more autonomy in creating a principle-based risk management policy related to its commercial and business lending activities, which currently can only be altered by obtaining a waiver from the NCUA.  The proposal would not alter the statutory cap set by the Federal Credit Union Act (FCU Act), which imposes an aggregate limit on an insured credit union’s outstanding MBLs, preserving safety and soundness in the credit union system.
NAR policy supports an increase in the MBL cap in credit union lending. NAR Policy is as follows:
NAR supports protecting and enhancing the flow of capital to commercial real estate. NAR believes Congress and the federal government should consider legislation and regulation aimed at improving commercial real estate markets including: (1) the creation of a U.S. covered bond market, (2) increasing the cap on credit union member business lending (MBL), (3) additional banking agency guidance related to term extensions and (4) improving credit availability
Read NAR’s letter here.
By: Erin Stackley, Stephanie A. Spear (National Association of REALTORS®)
Click here to view source article.