CUNA-Backed Bill Supports Credit Union Parity

April 5, 2017


Contact: Vicki Christner – CUNA Communication; 202-329-9950;

Washington, DC – (April 5, 2017) – Sen. Ron Wyden, D-Ore., along with Sens. Lisa Murkowski, R-Alaska, Elizabeth Warren, D-Mass., and Ed Markey, D-Mass., introduced the “Credit Union Residential Loan Parity Act,” a bill that creates parity for certain loans.

“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 and 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.”

The legislation addresses a disparity in the treatment of certain residential loans made by banks and credit unions. When a bank makes a loan to purchase a 1-4 unit non-owner occupied residential dwelling, the loan is classified as a real estate loan; however, if a credit union were to make the same loan, it would be classified as a business loan and therefore would be subject to the cap on member business lending under the Federal Credit Union Act. S. 836 would amend the Federal Credit Union Act to provide an exclusion from the cap for these loans. This exclusion would be consistent with the treatment of these loans proposed under the National Credit Union Administration’s pending risk-based capital regulation. In addition, S. 836 would authorize the National Credit Union Administration to apply strict underwriting and servicing requirements for the loans and the legislation would enable credit unions to provide additional credit to borrowers seeking to purchase residential units, including low-income rental units.

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About CUNA
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by more than 100 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit