Royce to offer new, NAFCU-backed MBL bill
March 13, 2014 – Rep. Ed Royce, R-Calif., plans to introduce NAFCU-sought legislation today with Rep. Jared Huffman, D-Calif., to exempt certain residential loans from credit unions’ federal statutory cap on member business lending.
Royce’s bill 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 is working to encourage House members to cosponsor the bill.
“The ‘Credit Union Residential Loan Parity Act’ would offer credit unions welcome relief from their statutory MBL cap, which is limiting credit unions’ ability to serve member small businesses and promote economic growth,” said Brad Thaler, NAFCU’s vice president of legislative affairs.
Royce announced his intention to offer this new bill last month. The bill is in addition to H.R. 688, which would raise the credit union MBL cap from 12.25 percent to 27.5 percent of assets and reflects a key element of NAFCU’s five-point plan for credit union regulatory relief.