Royce, Waters, Sherman speak up for credit union regulatory relief in mark-up

Several lawmakers said credit unions need greater lending flexibility within their communities Tuesday during a House Financial Services Committee mark-up of financial sector regulatory relief measures.

Rep. Ed Royce, R-Calif., said he would favor providing such relief for credit unions through an amendment to H.R. 1660, the “Federal Savings Association Charter Flexibility Act of 2015.”

H.R. 1660 would extend certain powers now held by national banks to federal savings associations without requiring a change in charter. Royce said he wanted to offer as an amendment his bill, H.R. 1422, the “Credit Union Residential Loan Parity Act,” to exempt certain residential loans from the credit union federal statutory member business loan cap. But recognizing it would not be ruled germane, he urged the panel to keep a focus on credit union regulatory relief moving forward.

Royce was supported in his bid by committee Ranking Member Maxine Waters, D-Calif., and Rep. Brad Sherman, D-Calif. Sherman acknowledged that H.R. 1660 would facilitate more business lending but easing the MBL cap for credit unions would do even more.

continue reading »