As of today, federally insured credit unions are no longer required to count any loans made on 1-to-4-unit family dwellings toward their statutory member business loan cap, according to a final rule published today in the Federal Register.
It’s one of the first changes made under the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), which the president signed into law May 24. The act removes an occupancy requirement for exclusion of loans secured by liens on 1-to-4-unit family dwellings, allowing all such loans to be excluded from the credit union MBL cap.
NCUA rules previously required that such dwellings be the primary residence of a member to be excluded from the cap. The NCUA Board approved the rule change by notation vote May 30 and set it to take effect upon publication in the F.R.