Member Business Lending

If a loan is made to a non-natural person or is used for a commercial, corporate, business investment or agricultural purpose, it is generally considered a business loan. More specifically, the Federal Credit Union Act defines a business loan as any loan, line of credit or letter of credit, the proceeds of which will be used for a commercial, corporate, other business investment property or venture, or agricultural purpose.

There are certain exceptions to this general definition. In addition to loans insured or guaranteed by a government agency or some loans granted by corporate credit unions, the following types of loans are not considered business loans according to the Federal Credit Union Act:

  • Loans that are fully secured by a lien on a one-four family dwelling that is the primary residence of the member.
  • Loans fully secured by credit union shares or other financial institution deposits;
  • Loans to a borrower whose aggregate amount of business credit is less than $50,000.00.
  • Loans made by federal credit unions to other credit unions and to credit union service organizations (CUSOs). This also applies to federally insured state chartered credit unions if their state regulator says there is a specific law on loans to other credit unions and CUSOs.

For additional information, click here for the topic.

Review the information today to help your credit union remain in compliance.


Outlook Live webinar scheduled

The Federal Reserve's "Outlook Live" conference series continues with a webinar on Common Violations and Hot Topics on Wednesday, July 29 at 2 p.m. EDT. Senior Federal Reserve staff will focus on areas where substantive and/or common violations occur, including:

  • Home Mortgage Disclosure Act (Regulation C)
  • Equal Credit Opportunity Act (Regulation B) - Spousal Signatures
  • Flood Disaster Protection Act of 1973
  • Unfair and Deceptive Acts or Practices Act (UDAP)

Source: Federal Reserve

CFPB 'Complaint Snapshot'

The CFPB has announced the first in a new series of monthly reports to highlight key trends from consumer complaints submitted to the Bureau. The monthly report will spotlight a particular product and location and provide complaint data on company performance, complaint volume, state and local information, and product trends. The first edition features debt collection complaints and complaints from consumers in the Milwaukee, Wisconsin, area.

Source: CFPB

Auto loan pricing

Consent Orders have been filed by the CFPB and DOJ concerning American Honda Finance Corporation discretionary auto loan pricing and compensation practices. A joint CFPB and DOJ investigation began in April 2013 of Honda's indirect auto lending compliance with the Equal Credit Opportunity Act, which prohibits creditors from discriminating against loan applicants in credit transactions on the basis of characteristics such as race and national origin. The investigation concluded that Honda's policies resulted in thousands of minority borrowers paying higher dealer markups of from $150 to over $250 more for auto loans. Under the CFPB order, Honda must substantially reduce or eliminate entirely dealer loan pricing discretion, pay $24 million in damages for consumer harm, and administer the distribution of those funds to victims. Under the DOJ Order, Honda will also pay $1 million to fund a consumer financial education program focused on consumer auto finance that is designed to benefit African-American, Hispanic and Asian/Pacific Islander populations.  Read CFPB’s announcement.

Source: CFPB

CFPB’s Fifth TRID Webinar Available

Part 5 of the CFPB’s TILA/RESPA webinar series is now available for viewing here. This fifth and final webinar addresses specific questions related to rule interpretation and implementation challenges that have been raised to the CFPB by creditors, mortgage brokers, settlement agents, software developers, and other stakeholders. In particular, this session covers industry questions relating to operations and technology challenges.

Recordings of the previous webinars in the TILA/RESPA series are available at the links below:

Source: CFPB

NCUA Hosting Webinar on FFIEC Cybersecurity Assessment Tool

ALEXANDRIA, Va. (July 21, 2015) – Credit unions can learn more about using the cybersecurity assessment tool recently announced by the Federal Financial Institutions Examination Council during an upcoming National Credit Union Administration webinar.

The 90-minute webinar, “An Introduction to the New Cybersecurity Assessment Tool for Credit Unions,” is scheduled for Wednesday, July 29, beginning at 2 p.m. Eastern. There is no charge.

The webinar, hosted by Tim Segerson, Deputy Director of Examination and Insurance, and Patrick Truett, an Information Systems Officer with the Office of Examination and Insurance, will include a discussion of the assessment tool’s background and purpose from NCUA’s perspective, the agency’s implementation plans and how to use the tool.

Online registration is available here. Participants will use the same link to log into the webinar. Registrants should allow pop-ups from this website.

Participants may submit questions in advance at The subject line of the email should read, “Cybersecurity Assessment.”

Participants with technical questions about accessing the webinar may email This webinar will be closed captioned and then archived online here approximately three weeks following the live event.

NCUA’s Office of Examination and Insurance provides national guidance for NCUA’s efforts to assure the safety and soundness of federally insured credit unions.

Source: NCUA


NCUA'S Proposed Member Business Lending Rule

The NCUA Board approved a proposed member business loan (MBL) rule at the agency’s June open Board meeting. The proposed rule will have a 60-day comment period with comments due to NCUA by August 31, 2015.

The proposed rule would completely overhaul NCUA’s MBL regulation. Almost all requirements not in the Federal Credit Union Act would be removed. The proposal would create a category of “commercial” loans for safety and soundness purposes and utilizes the category of MBLs for compliance with the Act’s limitations on member business lending. For example, the Act does not categorize any nonmember participations as MBLs and neither does the proposed rule. However, business loan participations are considered commercial loans for the purposes of safety and soundness.

The rule would remove all of the specific requirements that currently require waivers, including the personal guarantee requirement. It would also exempt some CUs with less than $250 million in assets from the board of director and management responsibility requirements and commercial loan policy requirements. The proposal does have an 18-month implementation period.

FCC Issues Declaratory Ruling on TCPA

On July 10 the Federal Communications Commission (FCC) issued an Omnibus Declaratory Ruling and Order about the Telephone Consumer Protection Act (TCPA). One important component of this ruling is an exemption granted for certain free to-the-consumer autodialed calls by financial institutions.

This includes calls concerning: (1) transactions and events that suggest a risk of fraud or identity theft; (2) possible breaches of the security of customers’ personal information; (3) steps consumers can take to prevent or remedy harm caused by data security breaches; and (4) actions needed to arrange for receipt of pending money transfers.

The FCC noted in the ruling that restrictions imposed on the exemption requires that the messages include no marketing or advertising, and that each message include information regarding how to opt out of future messages. Additionally, the FCC’s Order requires that financial institutions make sure that messages will be delivered free of charge to consumers.

CUNA supported this exemption in a comment letter. Specifically, CUNA’s comment expressed support for relief that would permit communications concerning: (1) transactions and events that suggest a risk of fraud or identity theft; (2) possible breaches of the security of customers’ personal information; (3) steps consumers can take to prevent or remedy harm caused by data security breaches; and (4) actions needed to arrange for receipt of pending money transfers.

While the exemption generally is good news for credit unions, CUNA’s Compliance department is in the process of reviewing the Order to determine how much relief this provides to credit unions. For example, this ruling could still impact credit unions ability to communicate with member via phone or text message.

Source:  CUNA

Regulatory Advocacy Report

The CUNA Regulatory Advocacy Report keeps you on top of the most important changes in Washington for credit unions--and what CUNA is doing to monitor, analyze, and influence government agencies and federal law. You can view the current report and past reports from the archive.

FREE Webinars on ComplySight, the League's latest compliance resource

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8/25/15 3:30 pm ET

Compliance eNEWSLETTER

July 24, 2015
Vol. 9, Issue 29

Created in partnership with the

Credit Union National Association

CU Compliance Connection – Field of Membership

As the credit union movement grows stronger every day, credit unions continue to research new ways to serve their members and to grow their field of membership.

Click here for the video

September, 2015 October, 2015 November, 2015
  • November 1st, 2015: Daylight Savings Time Ends
  • November 11th, 2015: Veterans' Day - Federal Holiday
  • November 26th, 2015: Thanksgiving Day - Federal Holiday
December, 2015 January, 2016


CUNA offers hundreds of online training events that make it easy for you to learn right at your desk. Click here for updates on compliance, operations, lending topics and more!

Custom Construction Lending - An Introduction webinar 7/28/2015

Introduction to Financial Management Analysis and Problem Solving webinar 9/10/2015

Custom Construction Lending - Technical Stuff, Best Practices and Red Flags webinar 9/10/2015

Money Mission Demo - Online Financial Literacy Game webinar 09/14/2015

Balance Sheet Earnings webinar 9/17/2015

Introduction to Investments webinar 9/24/2015

Loan and Deposit Pricing webinar 10/1/2015

ACH Origination webinar series 10/13/2015

Forecasting and Budgeting Approaches webinar 10/8/2015

ACH Origination webinar series 10/13/2015

Determining Loan Losses and Strategic Decisions webinar 10/15/2015

CUNA Financial Management eSchool - Part 2 10/22/2015

Advanced Financial Ratios webinar 10/22/2015

Advanced Asset-Liability Management webinar 10/29/2015

Advanced Financial Management Analysis and Problem Solving webinar 11/5/2015

Balance Sheet Earnings webinar 11/12/2015

Identify Interest Rate and Market Risks webinar 11/19/2015

Liquidity and Funding Risk webinar 12/3/2015

Money Mission Demo - Online Financial Literacy Game webinar (12-07-2015)

Forecasting and Strategically Planning for Long-Term Growth webinar 12/10/2015

Managing Credit Risk webinar 12/17/2015