Rep. Royce Introduces the Credit Union Residential Loan Parity Act

Representative Ed Royce (R-CA) introduced on January 10 the Credit Union Residential Loan Parity Act (H.R. 389).

According to the press release, the bill would remove loans made by credit unions for the purchase of non-owner occupied, 1-4 unit dwellings from the calculation of the member business lending (MBL) cap of 12.25 percent of assets.

However, the bill would permit the National Credit Union Administration (NCUA) to impose stringent underwriting and servicing requirements to these loans.

This legislation, if it becomes law, would significantly expand the ability of credit unions to make more business loans.

Other co-sponsors of the bill include Jared Huffman (D-CA), Don Young (R-AK), and Peter DeFazio (D-OR).

Read the bill.

Read the press release.