There's been a lot of talk about credit union member business lending (MBL) lately and its recently proposed changes from the NCUA. Nothing has occurred since 2003. And in today's rapidly-paced business environment, it feels more like 1803. So it may be high time to move the needle here to stay current with the times.
With the recently proposed changes, there is some movement for credit unions in this area and NCUA's Vice Chairman Rick Metsger has taken the torch and running with it to get these adjustments implemented soon. We caught up with Rick to get the inside scoop on some of the significant changes to MBL, as well as their possible effect on credit unions if given the green light.
Speaking of changes, we also discussed NCUA's recent announcement about automatically qualifying 12 groups as valid associations as they relate to a credit union's field of membership (FOM). Rick, who has championed necessary FOM changes, talks about this automation and what it means to credit unions looking to expand their audiences for future growth.
Lastly, we touched on an industry hypothetical based on a Feb. 24, 2015, CU Times Op/Ed piece by Cliff Rosenthal: What if there were no FOMs or common bonds needed for CUs? What would it look like for credit unions to have just an open membership like most cooperatives worldwide? It was definitely an entertaining ending to our conversation with Rick, as we always appreciate his time and insight on today's important issues. Enjoy!
Mike Lawson, Host
Married to a beautiful and wonderful wife, raising 5 kiddos (including twins!), enjoy helping others tell their stories, and love surfing SoCal waves. Keep it simple.