Removing Barriers Blog

CUNA Letter in Response to Banker Opposition of H.R. 1422, the Credit Union Residential Loan Parity Act
Posted June 16,2015 by CUNA Advocacy

CUNA sent a letter to leadership of the House Committee on Appropriations today to combat false claims from bankers on the credit union tax status and role of the member business lending cap. The letter expressed disappointment in an American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) letter which was sent in opposition to H.R. 1422, the Credit Union Residential Loan Parity Act. H.R. 1422 is simply a parity bill which would allow credit union loans to 1-4 family non-owner occupied residential loans to be considered as residential instead of business; bank loans are already classified in such a manner.

The bank groups falsely asserted that credit unions have a business lending cap in order to ensure that they fulfill their original mission as given by Congress. This claim is entirely false. The credit union mission is to provide access to financial services and to promote thrift and to be sources of credit for provident and productive purposes. That is precisely what credit unions do when they make safe and sound member business loans in their community. Credit unions have provided access to credit for small businesses when bankers would not during the financial crisis and ought to be allowed to continue to do so. We will keep you updated on the progress of H.R. 1422 and continue to advocate the importance of credit union business lending.