12 CFR Part 723, Member Business Loans; Commercial Lending

Forms and Documents

Document Name	Status
FINAL_3133-0101_SS_MBL Final Rule.pdf Supporting Statement A	2017-02-09

IC Document Collections

IC ID	Document Title	Status
220194	Revise Commercial Loan Policies and Procedures	Modified
220147	Develop Risk Rating System	Modified
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: 201607-3133-003
Status: Historical Active	Previous ICR Reference No: 201505-3133-002
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: Approved without change	Conclusion Date: 04/11/2017
	Date Received in OIRA: 02/09/2017
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2020	36 Months From Approved	06/30/2017
Responses	1,671	0	1,424
Time Burden (Hours)	46,752	0	9,492
Cost Burden (Dollars)	1,442,232	0	303,744

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Abstract: As part of NCUA’s Regulatory Modernization Initiative, the NCUA Board amends 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. The rule modernizes the regulatory requirements that govern credit union commercial lending activities by replacing the current rule's prescriptive requirement and limitations with a broad principles-based regulatory approached.

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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	Final or interim final rulemaking	81 FR 13530	03/14/2016

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	80 FR 37898	07/01/2015
30-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 13530	03/14/2016
Did the Agency receive public comments on this ICR? Yes

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

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

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,671	1,424	0	1,363	-1,116	0
Annual Time Burden (Hours)	46,752	9,492	0	41,724	-4,464	0
Annual Cost Burden (Dollars)	1,442,232	303,744	0	1,281,336	-142,848	0

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 46,752 hours.

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Annual Cost to Federal Government: $1,112,480

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: 02/09/2017

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