12 CFR Part 723, Member Business Loans; Commercial Lending

Forms and Documents

Document Name	Status
12CFR723_(1-1-20 ED).pdf Supplementary Document	2020-04-29
FINAL_3133-0101_MBL_SS_042920.docx Supporting Statement A	2020-04-29

IC Document Collections

IC ID	Document Title	Status
220194	Member Business Loans; Commercial Lending	Modified
220147	Develop Risk Rating System	Removed

ICR Details

OMB Control No: 3133-0101	ICR Reference No: 202002-3133-001
Status: Active	Previous ICR Reference No: 201607-3133-003
Agency/Subagency: NCUA	Agency Tracking No: E&I
Title: 12 CFR Part 723, Member Business Loans; Commercial Lending
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/04/2020
	Date Received in OIRA: 04/30/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2023	36 Months From Approved	06/30/2020
Responses	1,828	0	1,671
Time Burden (Hours)	3,656	0	46,752
Cost Burden (Dollars)	0	0	1,442,232

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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 approach.

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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:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 9809	02/20/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 23536	04/28/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Member Business Loans; Commercial Lending
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	1,828	1,671	0	0	157	0
Annual Time Burden (Hours)	3,656	46,752	0	0	-43,096	0
Annual Cost Burden (Dollars)	0	1,442,232	0	0	-1,442,232	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Adjustments have been made to (1) amend previously reported burden to only reflect burden associated with the requirements under PRA. The regulatory burden previous included in these totals has been removed. (2) A credit risk rating system is a requirement of the commercial lending policy and procedures and has been removed as a separate information collection. (3) The requirement to document collateral and construction budgets had previously been omitted, has been added. These adjustments reduce the burden by 43,096 hours, for a total of 3,656 burden hours requested.

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Annual Cost to Federal Government: $127,960

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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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: 04/30/2020

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