LICU Expansion, Distance From Cap Seen Blunting Need for MBL Cap Fight
Surrounding the chocolates, roses and love-filled greeting cards that made the rounds in Washington on Valentine’s Day, was an announcement from Rep. Ed Royce (R-Calif.) re-introducing a bill that would increase the member business lending cap from 12.25% of assets to 27.5%.
And the fight to expand lending authority heads back to the battlefield as bank trade groups stock their quivers with more arrows in hopes of emerging victorious in a battle that has waged on for at least a decade.
“A lot of credit unions would like a level playing field, particularly as more lenders come out in the marketplace,” Polevoy said. “It’s somewhat of an indication of a healthier economy. But credit unions have been out there throughout the cycle, have been generally conservative and have relatively good quality loans and didn’t have to pull back like other lenders did.”
Since 2003, CUBS has originated in excess of $250 million in commercial property and commercial mortgage loans in the Atlanta area and throughout Georgia as well as properties in Alabama and Tennessee, according to the CUSO’s website. This year, it plans to coordinate the funding of over $50 million in business and commercial property loans.