Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NEW: Royce set to introduce MBL-related bill
WASHINGTON (3/12/14, UPDATED 5:38 p.m. ET)--As he pledged to 4,400 credit union advocates at the Credit Union National Association's 2014 Governmental Affairs Conference less than two weeks ago, Rep. Ed Royce (R-Calif.) is ready to introduce a bill to exempt loans for one- to four-unit non-occupied dwellings from the credit union member business lending cap.
 
CUNA expects the bill to be introduced tomorrow.
 
In a letter to his House colleagues describing the bill and seeking support, Royce wrote: "When a bank makes a loan to finance the purchase of a small apartment building it is called a residential real estate loan.  When a credit union makes the same loan it is call a business loan" and thereby falls under the low 12.25%-of-assets MBL cap.
 
Royce tells House lawmakers that his common-sense credit union reform bill, called the "Credit Union Residential Loan Parity Act," would fix that disparity.
 
He added that, if enacted, the bill would allow credit unions to lend an estimated additional $11 billion to small businesses, freeing up "much needed private sector financing for commercial businesses and rental housing without costing taxpayers a dime."
 
The bill also authorizes the National Credit Union Administration to apply strict underwriting and servicing requirements for the loans.


RSS





print
News Now LiveWire
#NewsNow: @CUNA-CFA survey results suggest 3-3.5% increase in holiday spending. http://t.co/GjcDvvwfzy
13 hours ago
.@WOCCU promoted financial inclusion as a sustainable development goal at two separate @UN events this month.
14 hours ago
Colo. authorities OK first-ever #marijuana-focused CU #NewsNow http://t.co/77qj6O3bcu
14 hours ago
.@Vancity busts some Black Friday retail myths http://t.co/q8Wht3CcRc
15 hours ago
Things get hairy at #creditunions during #Movember http://t.co/Hc6tYRMSY8
17 hours ago