WASHINGTON (3/17/14)--Enactment of the Credit Union Residential Loan Parity Act (H.R. 4226) would enable credit unions to better meet the needs of their members and also would contribute to the availability of affordable rental housing, Credit Union National Association President/CEO Bill Cheney wrote in a letter of support for the newly introduced bill.
The bill, introduced late last week by Reps. Ed Royce (R-Calif.) and Jared Huffman (D-Calif.), would amend the Federal Credit Union Act to exclude from the 12.25%-of-assets member business lending cap any credit union residential loans made for the purchase of a one- to four-unit, non-owner-occupied residential dwelling.
The amendment would address an existing disparity in the treatment of those loans made by banks as compared to those made by credit unions.
"Enactment of this legislation would not only correct this disparity but it would also enable credit unions to provide additional credit to borrowers seeking to purchase residential units, including low-income rental units," Cheney wrote. He noted that CUNA looks forward to working with the bill's sponsor to see its enactment.