WASHINGTON (UPDATED: 9:25 A.M. ET, 2/25/14)--Legislation that would exempt certain housing loans from the member business lending cap will be introduced this week, Rep. Ed Royce (R-Calif.) told 2014 Credit Union National Association Governmental Affairs Conference attendees this morning.
The bill, known as the Credit Union Residential Loan Parity Act, would exempt one-to-four-unit non-occupied dwellings from the cap.
"We should take a closer look at [the MBL regulation] and where it doesn't work, fix it," Royce said.
"While this legislation is not a panacea to your biz lending woes it will provide relief," he added. The regulatory relief measure would also help increase affordable housing stock, Royce said.
These type of housing loans make up around 20% of CU MBL balances, he noted.
He asked credit unions to add a request for bill cosponsors to their list of asks when they hike Capitol Hill this week.
Do what you do best, "get some cosponsors," he said.