Might this time finally be the charm for member business lending? After years of lobbying and cajoling, credit unions will finally get their wish on June 16 when the Senate Banking Committee holds a hearing on Sen. Mark Udall’s (D-Colo.) legislation to raise the cap on member business loans.
Last week credit unions and banks failed to muster the votes to even delay the interchange fee cap regulation by a year. One could argue it was a failure of the American political structure that grants some groups or individuals inordinate amounts of power.
Board move pinned on expected June 16 Senate Banking Committee hearing on legislation to raise member business lending cap.
The Senate Banking Committee is expected to hold a hearing later this month on legislation by Sen. Mark Udall that would raise the cap on member business loans up to as much as 27.5%, several sources told Credit Union Times on Thursday.
Crippled by mounting commercial loan losses, the $1.6 billion Texans Credit Union was placed in conservatorship on April 15 by the NCUA.
Bankers may have a few holes in their anti-credit union business lending case if they’re looking at Texans Credit Union’s conservatorship.
A senior vice president with UBS' credit union groupo said the industry is at a crossroads and faces unprecedented challenges.
A California Republican and New York Democrat were preparing to introduce a member business lending cap bill similar to an existing Senate measure.
Three co-sponsors so far have joined the two original sponsors of the House member business loan cap bill, a companion to a Senate bill.
Reps. Ed Royce (R-Calif.) and Carolyn McCarthy (D-N.Y.) today introduced legislation to raise the cap on member business loans from credit unions to as much as 27.5% of assets.