Oregon Rep. DeFazio Joins Three Colleagues to Introduce MBL Bill in House
January 11, 2017
Rep. Peter DeFazio was part of a bipartisan group of four Representatives to introduce the Credit Union Residential Loan Parity Act (H.R. 389) in the House this week. DeFazio was joined by Reps. Ed Royce, (R-CA), Jared Huffman (D-CA), and Don Young (R-AK).Rep. Peter DeFazio (Photo: OregonLive)
If enacted, the bill would allow credit unions to lend an additional $11 billion to small businesses, allowing additional private sector financing for commercial businesses and rental housing.
Specifically, the bill removes loans made for the purchase of non-owner occupied, 1-4 unit dwellings from the calculation of the 12.25 percent member business lending cap currently imposed on credit unions.
Such loans are classified as a residential real estate loan for banks, but business loans for credit unions, making credit union loans subject to the cap. A similar bill was introduced by Senator Ron Wyden in the 114th Congress.
According to coverage from CUNA, H.R. 389 also maintains the ability of the NCUA to apply stringent underwriting and servicing requirements to these loans, which often depend on rent as a chief contributor towards repayment.
“This shows the value of strong, continued advocacy from Oregon credit unions,” added NWCUA SVP of Advocacy Jennifer Wagner. “We encourage you to take a moment to thank him for his leadership on this important issue.”