WASHINGTON (2/26/14)--Legislation that would exempt certain housing loans from the member business lending cap will be introduced this week, Rep. Ed Royce (R-Calif.) told the Credit Union National Association's 2014 Governmental Affairs Conference attendees Tuesday.
Rep. Ed Royce (R-Calif.), right, says it is fortunate that credit unions are in Washington for CUNA's 2014 Governmental Affairs Conference, the same week that House plans for comprehensive tax reform will be released. Credit union voices need to be heard, he says. Royce is shown here being greeted by CUNA GAC emcee Paul Berry. (CUNA Photo)
The bill, known as the Credit Union Residential Loan Parity Act, would exempt one- to four-unit non-occupied dwellings from the cap.
"We should take a closer look at [the MBL regulation] and where it doesn't work, fix it," Royce said.
"While this legislation is not a panacea to your business lending woes it will provide relief," he added. The regulatory relief measure would also help increase affordable housing stock, Royce said.
These type of housing loans make up around 20% of credit union MBL balances, he noted.
He asked credit unions to add a request for bill co-sponsors to their list of asks when they hike Capitol Hill this week.
Do what you do best, "get some co-sponsors," he said.
Royce said the new bill will augment his other MBL work. His bill, the Credit Union Small Business Jobs Creation Act (H.R. 688), would increase the MBL cap to 27.5% of assets from 12.25%. CUNA has estimated that lifting the MBL cap would create 140,000 jobs and inject $13 billion in new funds into the economy, at no cost to taxpayers.
Saying "the best defense is a good offense," Royce also highlighted other recent legislation he has introduced, including a bill that would extend National Credit Union Share Insurance Fund coverage to accounts such as Interest on Lawyers Trust Accounts and prepaid debit card master accounts.