Maloney, Grimm: CUs step up in natural disasters
Rep. Carolyn Maloney (Dietsch photo)
Sept. 11, 2013 – Reps. Carolyn Maloney, D-N.Y., and Michael Grimm, R-N.Y., pointed to credit unions’ important role helping areas hit by natural disasters and highlighted legislation to promote that role Tuesday during NAFCU’s Congressional Caucus in Washington.
Maloney is ranking member of the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises and a senior member of the full committee. She is the chief sponsor of H.R. 1646, which would amend the Federal Credit Union Act to exempt from the member business loan cap loans to aid disaster recovery. Grimm, also a member of the House Financial Service Committee, is the bill’s chief Republican cosponsor.
Maloney noted her work with credit unions as a community activist and city council member before she was elected to Congress. She praised credit unions’ history of staying with underprivileged communities when other financial services companies abandoned them.
When Hurricane Sandy hit, she said 23 states – not just New York and New Jersey – were affected. “A byproduct of this was that there was no access to credit” in many of those communities, though credit unions stepped up when they were needed.
Later, Grimm echoed the sentiment: “What makes you different is you really understand it’s about people. They are real people with families, grandchildren, grandparents; they’re scared and they need support to get to the next level.”
Under H.R. 1646, she said, “If you’re in a natural disaster zone, the limit on business loans will be lifted.” She said arbitrary, government-placed limits on member business lending hinder credit unions from helping when they’re needed.
Maloney also spoke about the need for government-sponsored entity reform that supports credit unions’ government guaranteed access to the secondary mortgage market.
NAFCU Congressional Caucus