March 17, 2014

NAFCU urges House support for MBL bill

March 18, 2014 – NAFCU Vice President of Legislative Affairs Brad Thaler on Monday urged House leaders to support H.R. 4226, the "Credit Union Residential Loan Parity Act," to exempt certain residential loans from credit unions' federal statutory cap on member business lending.

Reps. Ed Royce, R-Calif., and Jared Huffman, D-Calif., introduced H.R. 4226 on Thursday. The 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.

"The relief this legislation would give to credit unions could help to both increase the amount of available credit to our nation's small businesses and increase the availability of credit in the recovering but fragile housing market," Thaler wrote in a letter Monday to House Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif.

On Thursday, NAFCU President and CEO Dan Berger thanked Royce and Huffman for introducing this legislation. This bill is in addition to H.R. 688, also introduced by Royce, 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.