12 CFR Part 723, Member Business Loans; Commercial Lending

Forms and Documents

Document Name	Status
3133-0101_SS_MBL_NPRM 01JUL15_Final_022216.docx Supporting Statement A	2016-02-22

IC Document Collections

IC ID	Document Title	Status
220194	Revise Commercial Loan Policies and Procedures	New
220147	Develop Risk Rating System	New
209012	Loan Purchase Approval Requests	Removed
209011	Waiver Requests	Removed
182555	Develop Written Loan Policies	Removed

ICR Details

OMB Control No: 3133-0101	ICR Reference No: 201505-3133-002
Status: Historical Inactive	Previous ICR Reference No: 201310-3133-002
Agency/Subagency: NCUA	Agency Tracking No: E&I
Title: 12 CFR Part 723, Member Business Loans; Commercial Lending
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Comment filed on proposed rule and continue	Conclusion Date: 03/31/2016
	Date Received in OIRA: 02/23/2016
Terms of Clearance: OMB files this comment in accordance with 5 CFR 1320.11( c ). This OMB action is not an approval to conduct or sponsor an information collection under the Paperwork Reduction Act of 1995. This action has no effect on any current approvals. If OMB has assigned this ICR a new OMB Control Number, the OMB Control Number will not appear in the active inventory. For future submissions of this information collection, reference the OMB Control Number provided. Pursuant to 5 CFR 1320.11(c), OMB files this comment on this information collection request (ICR). The agency shall examine public comment in response to the NPRM and will describe in the supporting statement of its next collection any public comments received regarding the collection as well as why (or why it did not) incorporate the commenter’s recommendation. The next submission to OMB must include the draft final rule.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2016	36 Months From Approved	06/30/2017
Responses	1,424	0	1,424
Time Burden (Hours)	9,492	0	9,492
Cost Burden (Dollars)	303,744	0	303,744

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Abstract: As part of NCUA’s Regulatory Modernization Initiative, the NCUA Board proposes to amend its member business loan (MBL) rule (Part 723) to provide federally insured credit unions with greater flexibility and individual autonomy in safely and soundly providing commercial and business loans to serve their members.

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Authorizing Statute(s): US Code: 12 USC 1751 Name of Law: Federal Credit Union Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3133-AE37	Proposed rulemaking	80 FR 37898	07/01/2015

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Waiver Requests
Develop Written Loan Policies
Loan Purchase Approval Requests
Revise Commercial Loan Policies and Procedures
Develop Risk Rating System

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Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Regulations

Short Statement: Adjustments are attributed to the removal of the burden hours associated with usual and customary business practices. Program change are attributed credit unions that are engaged in business lending activities and not exempted from §723.3 and §723.4 that may need to revise their loan policies and procedures. The proposed rule also relieves credit unions from the current requirement to obtain MBL related waivers and prior approval from NCUA for a credit union’s non-member loan balances to exceed the lesser of 1.75 times the credit union’s net worth or 12.25 percent of the credit union’s total assets. Total burden requested is 47,568 hours.

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Annual Cost to Federal Government: $1,925,760

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 02/23/2016

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