Reps. Ed Royce (R-Calif.), Jared Huffman (D-Calif.), Don Young (R-Alaska) and Peter DeFazio (D-Ore.) yesterday introduced an ABA-opposed bill (H.R. 389) that would exclude non-owner occupied, 1-4-family dwellings from the calculation of the cap on credit union member business loans. According to Royce’s office, the bill would boost credit unions’ member business lending by $11 billion.
The measure would come on top of recent actions by the credit union regulator — currently subject to litigation by the banking industry — to loosen the cap on member business loans.
ABA, the state bankers associations and bankers have successfully opposed similar legislation in previous Congresses, stopping an effort in the last Congress to tuck this measure into a spending bill. ABA will continue to resist efforts to expand the ability of tax-exempt credit unions to exceed their mission by reaching business markets already well-served by taxpaying community banks.
