Royce introduces new MBL bill
NAFCU President and CEO Dan Berger thanked Reps. Ed Royce, R-Calif., and Jared Huffman, D-Calif., for their introduction Thursday of NAFCU-sought legislation to exempt certain residential loans from credit unions’ federal statutory cap on member business lending.
H.R. 4226, the “Credit Union Residential Loan Parity Act,” would remove loans to purchase non-owner-occupied, one- to four-unit dwellings from the calculation of credit union MBLs, which are capped by statute at 12.25 percent of assets. NAFCU is working to encourage House members to cosponsor the bill.
“Representative Royce has been a great champion of credit unions’ member business lending efforts,” said Berger. “We thank him and Representative Huffman for their support of credit unions and strongly urge other members of Congress to cosponsor this new bill, which would provide credit unions with more flexibility within their lending cap.”
Royce announced his intention to offer this new bill last month. The bill is in addition to H.R. 688, which would raise the credit union MBL cap from 12.25 percent to 27.5 percent of assets and reflects a key element of NAFCU’s five-point plan for credit union regulatory relief.