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Removing Barriers Blog

Reintroduction of 1-4 Legislation
Posted January 10, 2017 by CUNA Advocacy
Today four House members introduced legislation that would correct the disparity between banks and credit unions regarding the 1-4 non-owner occupied residential loans. When banks make loans for the purchase of a 1-4 unit, the loan is classified as a residential real estate loan. However, if a credit union were to make the same loan, it would be classified as a business loan and therefore subject to the member business lending cap.

Congressmen Ed Royce (R-Calif.), Jared Huffman (D-Calif.), Don Young (R-Alaska), and Peter DeFazio (D-Ore.) introduced H.R. 389, the “Credit Union Residential Loan Parity Act.” Passage of this legislation would correct the disparity between banks and credit unions and would enable credit unions to provide additional credit to borrowers seeking to purchase residential units. CUNA appreciates the efforts of the congressmen and will work with them to ensure passage in the 115th Congress.