NCUA has released its new call report form and accompanying instructions, which become effective Sept. 30. For credit unions engaged in commercial lending, most notable are the updates reflecting the January 2017 changes to the member business lending (MBL) rule. The MBL rule creates a distinction between MBLs and commercial loans, and the new call report form is updated to report the separate categories. The call report instructions contain a list to help clarify the distinction between the two loan types, similar to the chart created earlier this year by CUNA compliance staff.

The Instructions also explain that the reporting of commercial loans will be broken down into subcategories such as:

  • Construction and development loans;
  • Loans secured by farmland;
  • Secured by multifamily residential property;
  • Secured by owner-occupied, nonfarm nonresidential property;
  • Secured by nonowner-occupied, nonfarm nonresidential property;
  • Real estate-secured commercial loans;
  • Loans to finance agricultural production and other loans to farmers’ commercial and industrial loans;
  • Unsecured commercial loans;
  • Unsecured revolving lines of credit granted for commercial purposes; and
  • Total commercial loans to members.

For member business loans, credit unions will only report the net member business loan balance (NMBLB) and the NMBLB comprised of 1- to 4-family residential properties.