A House subcommittee has chosen Christopher Columbus' birthday to explore whether to give credit unions the right to raise the cap on member business loans.
The House Financial Services Committee's Subcommittee on Financial Institutions and Credit is planning a hearing on Oct. 12 at 2 p.m. on legislation to raise the MBL cap from 12.25% to 27.5%.
The panel hasn't officially announced the date, but its staff members have informed officials at CUNA, NAFCU and other interested parties of the schedule.
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Subcommittee Chairman Shelley Moore Capito (R-W.Va.) had previously announced that the hearing would take place but didn't specify a date. She hasn't taken a position on the bill.
There haven't been any witnesses announced, but when the Senate Banking Committee held a hearing on the subject in June, NCUA Chairman Debbie Matz testified and endorsed raising the cap. There were witnesses from CUNA and NAFCU and the two banking associations.
Lobbyists for CUNA and NAFCU said they are working with their congressional allies to see which bill to attach the MBL measure to or whether to try to move it as a standalone measure.
President Obama has proposed a jobs creation package, but its prospects for passage are considered uncertain at best. CUNA and NAFCU and several lawmakers tried unsuccessfully to persuade Obama to include the MBL hike in the bill.
Rep. Ed Royce (R-Calif.) and Rep. Carolyn McCarthy (D-N.Y.) have sponsored the legislation and so far it has 79 co-sponsors. Sen. Mark Udall (D-Colo.) has sponsored companion legislation in the Senate and it has 21 co-sponsors.
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