Committee passes ILC loophole, down-payment assistance bills

June 24, 2022

The House Financial Services Committee advanced two CUNA-supported bills Thursday: the Close the ILC Loophole Act (H.R. 5912) and Downpayment Toward Equity Act of 2021 (H.R. 4495). CUNA wrote in support of both bills prior to the committee’ markup.

H.R. 5912 would “prevent the further exploitation of the loophole by firms seeking to gain all of the advantages of an FDIC-insured bank charter without the concomitant supervision and regulation that Congress has established for the corporate owners of full-service insured banks,” CUNA believes.

H.R. 4495 would establish a down-payment assistance program to assist first-generation homebuyers and low-income borrowers become homeowners. CUNA asked the committee asking the committee to ensure credit unions that serve underserved areas are explicitly eligible under the legislation.