National Association of Federally-Insured Credit Unions (NAFCU) President and CEO Dan Berger today praised Reps. Ed Royce, R-Calif., Jared Huffman, D-Calif., Don Young, R-Alaska, and Peter DeFazio, D-Ore., for their bipartisan leadership in seeking credit union relief by reintroducing NAFCU-backed legislation, the “Credit Union Residential Loan Parity Act,” which would exempt certain residential loans from credit unions’ federal statutory cap on member business lending.
“NAFCU and our members thank Reps. Ed Royce, Jared Huffman, Don Young, and Peter DeFazio for their backing of credit unions’ member business lending efforts,” said Berger. “We strongly urge other members of Congress to support and cosponsor the bill, which would provide credit unions with more flexibility within their lending cap and help them better serve small business owners critical capital needs.”
H.R. 389, the “Credit Union Residential Loan Parity Act,” would remove loans to purchase non-owner-occupied, one- to four-unit dwellings from the calculation of credit union MBLs, which are capped by statute at 12.25 percent of assets.
NAFCU has long held that removing or modifying the credit union MBL cap would help provide economic stimulus by allowing small businesses more access to credit without costing taxpayers a dime.