Feb. 26, 2014 – Rep. Ed Royce, R-Calif., said yesterday he plans to introduce the “Credit Union Residential Loan Parity Act” to exempt certain residential loans from the credit union member business lending cap. The lawmaker discussed his plan to offer the bill during remarks Tuesday before the CUNA Governmental Affairs Conference.
Royce’s legislation would exempt loans for non-owner-occupied, one- to four-unit dwellings from credit unions’ current MBL cap. It is in addition to his H.R. 688, which would raise the credit union MBL cap from 12.25 percent to 27.5 percent of assets; this new measure would also expand credit unions’ MBL authority. NAFCU continues to push for increased MBL authority for credit unions as part of its five-point plan for credit union regulatory relief. The lawmaker discussed credit unions’ need for more MBL authority in a hearing last April on credit union regulatory relief. “We thank Rep. Royce for his leadership in seeking ways to help bring relief to credit unions that are nearing their cap,” said Brad Thaler, NAFCU’s vice president of legislative affairs.