Removal of Occupancy Requirement for 1-to-4-Unit Dwellings Takes Loans Out from Under Lending Cap
ALEXANDRIA, Va. (June 1, 2018) – Federally insured credit unions will no longer have to count loans made on any 1-to-4-unit family dwellings as member business loans after a vote by the National Credit Union Administration Board.
As such, these loans will not count towards the aggregate member business loan cap imposed on each federally insured credit union.
The final rule, available online here (opens new window), will become effective upon publication in the Federal Register.
The Board unanimously approved, by notation vote on May 30, 2018, a change to the member business lending rule that removes the member’s occupancy requirement for loans secured by liens on 1-to-4-unit family dwellings. The member business lending rule previously required those dwellings to be the primary residence of a member in order to be excluded.
The NCUA Board approved the change to make the member business lending rule conform with changes to the Federal Credit Union Act incorporated into the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018, signed into law by President Donald J. Trump on May 24.