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June 25, 2008 - State-chartered credit unions may benefit from two provisions impacting member business lending (MBL) in H.R. 6312, the Credit Union, Bank, and Thrift Regulatory Relief Act of 2008, (CUBTRRA), passed yesterday in the House without objection.
First, the bill would exclude loans or loan participations by federally insured credit unions to non-profit religious organizations from MBL limits contained in the Federal Credit Union Act. Further, it encourages small business development in underserved urban and rural communities by excluding member business loans made to members in underserved communities from a credit union’s MBL cap.
The other provisions in CUBTRRA apply to federal credit union (FCU) powers and regulatory relief for banks and thrifts. The FCU provisions apply to FCU field of membership, FCU investments in credit union service organizations (CUSOs) and FCU loan limits. The bill also gives the National Credit Union Administration (NCUA) greater flexibility to respond to market conditions.
CUBTRRA, known as “CURIA-Lite,” does not include provisions offered in the Credit Union Regulatory Improvements Act that make changes to Prompt Corrective Action and increases the MBL cap. NASCUS will continue to promote comprehensive capital reform as a key element of credit union regulatory relief.
Next, the Senate will review and debate the legislation. To read other legislative updates, click here.
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