ABA and the Independent Community Bankers of America wrote to the House Appropriations Committee on Friday opposing the use of the congressional spending process as a back door for a credit union-backed provision to further expand their member business lending privileges.
The gambit in question would expand the exemption for business loans secured by a 1-to-4-family dwelling to include those dwellings that are not primary residences — thus allowing credit union loans to finance rental housing businesses without counting toward the 12.25 percent MBL asset cap.
“Congress must not allow credit unions to further encroach into business lending, altering the fundamental character of their charter and expanding their already significant tax subsidy,” ABA and ICBA said. “At a minimum, a change of this significance should not be considered without observing regular order and appropriate debate.”
