A House panel will hear from NCUA Chairman Debbie Matz and five industry officials at next Wednesday's hearing on legislation to raise the cap on member business loans from 12.25% of assets to as much as 27.5% of assets.
Matz, who endorsed similar legislation when she testified before the Senate Banking Committee in June, is the sole witness on the first panel at the hearing of the House Financial Services Committee's Subcommittee on Financial Institutions and Consumer Credit.
Gary Grinnell, president and CEO of Corning Credit Union, is testifying on behalf of NAFCU. His credit union, headquartered in Corning, N.Y., has assets of $636 million. Jeff York, President and CEO of Coasthills FCU, is testifying on behalf of CUNA. His credit union, headquartered in Lompoc, Calif., has assets of $630million. Mike Hanson, president and CEO of the Massachusetts Credit Union Share Insurance Corporation is also scheduled to testify.
Albert C. Kelly, Jr., president and CEO of SpiritBank of Tulsa, Okla., Is testifying on behalf of the American Bankers Association Sal Marranca, president and CEO of Cattaraugus County Bank of Little Valley, N.Y., will testify on behalf of the Independent Community Bankers of America. Reps.
Ed Royce (R-Calif.) and Carolyn McCarthy have sponsored the legislation and so far it has 79 cosponsors. Sen. Mark Udall (D-Colo.) has sponsored companion legislation in the Senate and it has 21 cosponsors. Both bills require that credit unions must be well-capitalized, be at or above 80% of the current cap, have five or more years of member business lending experience and be able to demonstrate sound underwriting and servicing. If a credit union's net worth ratio falls below the well-capitalized requirement (currently 7%), it would have to stop making new business loans.
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