CUNA wrote to five Senators Monday to support their bipartisan bill that contains regulatory relief provisions for credit unions. The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) was introduced last week, and addresses several goals of CUNA's Campaign for Common-Sense Regulation.
“This legislation represents a significant breakthrough in bipartisan negotiations, and contains many provisions that would improve the operating environment for credit unions and allow them more effectively to help their members realize their financial goals,” wrote CUNA President/CEO Jim Nussle.
A credit union-specific provision that CUNA has long supported in standalone bills would grant credit unions parity with banks when making loans for the purchase of one-to-four unit, non-owner occupied residential property loans. Such loans are designated real estate loans for banks, but business loans for credit unions.
This means such loans count against the statutory member business lending cap for credit unions.
S. 2155 would classify such credit union loans as real estate loans, freeing up credit unions to lend to more small businesses, which CUNA believes would make up to $4 billion in additional capital available.
Other provisions CUNA supports would:
The letter was sent to S. 2155's original sponsors, Sens. Mike Crapo (R-Idaho), Joe Donnelly (D-Ind.), Heidi Heitkamp (D-N.D.), Jon Tester (D-Mont.) and Mark Warner (D-Va.).