WASHINGTON (6/24/08)--The Credit Union National Association (CUNA) today corrected a number of misleading and inaccurate points made in a trade press web posting about the credit union-bank regulatory relief bill, to be considered today in the House of Representatives. Key among the corrections: If enacted, the bill would expand the definition of "underserved areas" for credit unions, and allow all business loans made in those areas to be exempted from the cap on such loans. “With all of the back and forth about regulatory relief legislation, and the changing acronyms, it might be easy to become confused,” said CUNA Vice President of Legislative Affairs Ryan Donovan. “But, the bottom line about this legislation is that it offers regulatory relief for credit unions in a substantive way.” Among the key points CUNA made in its corrections:
* The Credit Union, Bank, Thrift Regulatory Relief Act (CUBTRRA, HR 6213) changes the way underserved areas are determined by expanding the definition; * All of the provisions affecting banks and thrifts have been passed previously by the House; and * The provision exempting most business loans made in underserved areas from the statutory cap on member business loans is a major step forward in credit unions’ ultimate goal of giving credit unions more flexibility in making business loans to members.
In other developments, CUNA President/CEO Dan Mica late Monday urged all House members to support CUBTTRA. “H.R. 6312 represents a good first step toward providing credit unions the regulatory framework needed to serve their members in the 21st Century,” said Mica. Use the resource links for complete details and the bill's official Congressional text.