In January, MEMBERS Business Solutions Company, LLC (MBSC), announced it would use Bankers Systems' Rembrandt Lending System to help establish effective and compliant business lending documentation.

For Bankers Systems, the announcement was part of a steady increase in business from credit unions and credit union service organizations (CUSOs) since credit union business lending regulations were loosened in 2003.

In September 2003, the National Credit Union Administration (NCUA) approved a member business loan regulation that expanded credit unions investment options, opening the door to what has been consistent growth in business lending on the part of credit unions.

In fact, MEMBERS Business Solutions Company's, a subsidiary of MEMBERS Development Company, LLC, was itself just formed in June 2004 to provide business lending services to credit unions and CUSOs. It opened its doors in October of 2004 offering services such as underwriting best practices, start-up consulting, and the facilitation of a national secondary market for credit union member business loans. "Credit unions are relatively new to business lending. As they enter the market to better serve members, the need for compliant lending documentation comes into play," said Sue Pogatschnik, credit union market segment manager for Bankers Systems, a Microsoft banking partner. "Because many of them are new to the market, this is the first system they have, or they may have started using paper-based lending documentation."

Rembrandt can be installed for use in a single credit union, or in a CUSO, which would have many credit union clients, each with slightly different procedures.

"It has flexible set-up options to allow the customer to set up multiple policies," said Anita Storing, marketing product manager. "When we set up in an institution, different credit unions may have different policies, different accrual methods; we tailor the lending policies to the institution."

Meanwhile, the product comes with all the documents an institution would need to ensure compliance. In fact, if different states have regulations that may apply, the system is set to support those as well.

With a knowledge base and a rule engine that generates steps based on user responses to questions posed by the system, the intuitive system is relatively easy for users to navigate. In total it takes about a day and a half to set up the system and train those who will be using it, Storing estimated.

Standard transaction templates can be pre-filled with common rates, fees and charges. "It facilitates overall consistency for the loan processor, for faster, more efficient processing," Pogatschnik said.

Meanwhile, legal reference help software allows users to drill down and learn more about regulations and their backgrounds. "If you have a question about whether you should include a clause about arbitration, it will help you make that decision," Storing said.