Rep. Ed Royce (R-Calif.) announced on Wednesday that he is reintroducing a bill that corrects a disparity between banks and credit unions for the treatment of loans for the purchase of small apartment buildings.
"The bill removes these loans from the calculation of the member business lending cap imposed on credit unions," Royce said at a House Financial Services Committee hearing, titled, "Preserving Consumer Choice and Financial Independence."
The Credit Union Residential Loan Parity Act was introduced in the last session of Congress. Royce has also re-introduced a bill that would raise the member business lending cap to 27.5% of assets. NCUA Board Member Mark McWatters, who was in attendance at the hearing, recently called for a complete rewrite of the NCUA's member business lending regulations.
Recommended For You
According to CUNA, when a bank makes a loan to finance the purchase of a one to four unit non-owner occupied residential dwelling, the loan is classified as a residential real estate loan.
The same loan made by a credit union is classified as a business loan, which is subject to the member business lending cap under the Federal Credit Union Act.
"I thank Representative Royce for his continued support to help bring parity to residential loans made by credit unions," CUNA President/CEO Jim Nussle said. "This much needed legislation would enable credit unions to better serve members who purchase rental properties and contribute to the availability of affordable rental housing."
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
