Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
CUNA takes on banks for MBL claims
Click to view larger image Click to download pdf
WASHINGTON (4/12/12)--The Credit Union National Association (CUNA) is warning lawmakers to not be fooled by the misinformation being circulated by bankers in an attempt to derail potential Senate action that could increase the credit union member business lending (MBL) cap."

Sen. Mark Udall's (D-Colo.) legislation, S. 2231, would increase the MBL cap from 12.25% of assets to 27.5% of assets, injecting $13 billion in new funds into the economy and creating 140,000 new jobs, at no cost to taxpayers, CUNA has said. A vote on the Senate bill is expected once members of Congress return to Washington on April 16, and Rep. Ed Royce (R-Calif.), a key sponsor of House MBL legislation, has promised a vote on his bill after any Senate action.

CUNA Senior Vice President of Legislative Affairs Ryan Donovan said "bankers have been pelting legislators with twisted facts ahead of the vote."

To challenge this misinformation campaign, CUNA has distributed a fact sheet that corrects banker assertions to all members of Congress.

The fact sheet notes that:

  • Credit unions have been lending to small businesses for more than 100 years;
  • More than 500 credit unions are or will be bumping against the MBL cap in under three years, and the low current cap of 12.25% of assets means that two-thirds of credit unions, most of which hold under $50 million in assets, cannot justify the cost of investing in new business lending programs;
  • The average credit union business loan is $219,000; and
  • MBL cap increase legislation is not, in fact, "controversial," but has been introduced in each of the last four Congresses.
MBL cap increase legislation "is only controversial because the banks don't like it… everyone else thinks it's a no-brainer," the fact sheet adds.


RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
6 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
6 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
9 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
10 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
11 hours ago