Another Credit Union Speaks Out Against Udall Bill

A Michigan credit union executive last week urged Senate leaders in a letter to oppose legislation (S. 2231) would more than double the credit union business-lending cap.

Dennis Moriarity, treasurer-manager of Unity Credit Union located in Warren, Michigan, said he is concerned about the increased risk the bill would impose on credit unions that don’t make business loans, or aren’t interested in exceeding the business-loan limit.

“The exposure is to our reserves and retained earnings, which could eventually be confiscated to pay for the mistakes of lenders who are unfamiliar with the complexity of business lending, or who might ignore risks in pursuit of revenues,” he said.

The risk from increased business-lending authority “could spell doom for many credit unions that, by association, become liable for the decisions of others without any opportunity for input in those decisions,” Moriarity added.