WASHINGTON — Six more lawmakers signed up to co-sponsor the Credit Union Regulatory Improvements Act (H.R. 1537) recently, bringing the total up to 68.
The latest members of Congress to add their names included George Radanovich (R-Calif.), Zoe Lofgren (D-Calif.), Loretta Sanchez (D-Calif.), John Porter (R-Nev.), Dave Weldon (R-Fla.), and Rosa DeLauro (D-Conn.); all of them were co-sponsors to CURIA last Congress as well. With 68 official supporters so far, the bill is more than halfway to last year's 125 co-sponsors less than two months after being introduced.
CURIA would establish a risk-based capital framework for credit unions comparable to the banks. In previous versions, Treasury had reportedly expressed some concerns with the formula and changes were made to bring it more in line with what they wanted to see. In the end, each capital bucket floor was increased by 0.25%.
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Business lending powers would be expanded by increasing the cap from 12.25% of assets to 20%. Additionally, business loans under $100,000 would not count against the cap, while the current threshold is $50,000. It would also permit credit unions to exclude business loans to nonprofit religious organizations and allow them to lease unused office space in underserved areas.
The latest version of CURIA would require 30% voter participation in conversions to mutual savings banks though a previous version put it at 20%. Presently, there is no minimum voting requirement. A special member meeting would be required 30 days before balloting and incentives to vote would be prohibited.
Finally, the bill would reinstate the ability of federal credit unions of all charter types to adopt underserved areas, among other things. –[email protected]
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