ARLINGTON, Va. – NAFCU is expressing concern NCUA may be preparing to place what it says are unnecessary restrictions on credit unions’ member business loans.
The trade group, following up on the agency’s Advance Notice of Proposed Rulemaking on MBLs, told NCUA that any “limitations should not expand upon existing legislative restrictions on MBLs because these restrictions already pose major challenges for credit unions who seek to meet their members’ MBL needs.”
Specifically, NAFCU is urging the regulator not only to not lower the 80% LTV requirement on MBLs, but to allow “credit unions to issue loans at higher than 80% LTV” if they have demonstrated sufficient capital, expertise and ability to assess risks on MBLs.
Similarly, NAFCU said the 75% LTV requirement for construction and development (C&D) loans should also be raised for any credit union that meets the aforementioned criteria.
