CUNA wrote to Sens. Ron Wyden (D-Ore.) and Lisa Murkowski (R-Alaska) Tuesday, thanking them for introducing a bill that would provide regulatory relief to credit unions. The bill, also co-sponsored by Sens. Elizabeth Warren (D-Mass.) and Edward Markey (D-Mass.), would exempt credit union loans to purchase 1 to 4-unit non-owner occupied residential dwellings from the member business lending cap.
Such loans are classified as real estate loans for banks, but as business loans for credit unions.
“On behalf of America’s credit unions and their more than 110 million members, we thank Senators Wyden and Murkowski for introducing S.836, legislation that creates parity for certain residential loans made by both banks and credit unions,” said Jim Nussle, CUNA president/CEO. “CUNA, the leagues and credit unions look forward to working with the senators to ensure enactment of this legislation which would allow credit unions to better meet the needs of their members, and also contribute to the availability of affordable rental housing.”
In addition to providing parity with banks, the bill would authorize the NCUA to apply strict underwriting and servicing requirements for the loans.
If enacted, the bill would allow credit unions to lend an additional $11 billion to small businesses, allowing additional private sector financing for commercial businesses and rental housing.
A House version of the bill, the Credit Union Residential Loan Parity Act (H.R. 389) was introduced in January by Reps. Ed Royce, (R-Calif.), Jared Huffman (D-Calif.), Don Young (R-Alaska) and Peter DeFazio (D-Ore.).