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L-R: Reps. Jared Huffman (D-CA) and Ed Royce (R-CA)

NEW LOAN PARITY BILL INTRODUCED
updated 03/17/14 04:38 PM
Also, Success on FHLB Legislation
Legislation that gives parity for credit unions with respect to standing law for banks (H.R. 4226) was introduced last week in the House of Representatives by Rep. Jared Huffman, D-CA, and co-sponsored by Rep. Ed Royce, R-CA—marking the first time these legislators have worked together on a credit union issue.

The Credit Union Residential Loan Parity Act would exempt loans for non-owner occupied one-to-four unit dwellings from the current member business lending cap on credit unions (12.25 percent of assets). Royce, a speaker during the Credit Union National Association’s (CUNA) 2014 Governmental Affairs Conference in February, had said that, “while it’s not a panacea to credit unions’ business lending needs, it will greatly improve how you serve your members.”

Royce is also the author of legislation to raise the credit union member business lending cap from 12.25 percent of assets to 27.5 percent.

Click here to read Royce’s letter." rows="5" cols="100" WRAP="physical">In a letter to his House colleagues describing the bill and seeking support, Royce writes: "When a bank makes a loan to finance the purchase of a small apartment building, it is called a residential real estate loan. When a credit union makes the same loan, it is called a business loan," and thereby falls under the low 12.25 percent-of-assets member business lending cap. Click here to read Royce’s letter.

If H.R. 4226 is enacted, it would allow credit unions to lend an estimated additional $11 billion to small businesses nationwide. The bill also authorizes the National Credit Union Administration (NCUA) to apply strict underwriting and servicing requirements for the loans.

House Committee Passes CU FHLB Legislation
The House Financial Services Committee held its first major mark-up of the year last week and passed H.R. 3584, legislation to allow privately insured credit unions to apply for membership in the Federal Home Loan Bank (FHLB) system. The 55-0 vote was enough to move this measure to the floor of the House.

This legislation is a technical fix that has passed the House of Representatives twice in prior sessions of Congress. Between California and Nevada, there are 19 credit unions of the more than 130 nationally that are primarily insured by American Share Insurance (ASI), based in Dublin, OH.

H.R. 3584 now moves to the House floor, where other credit union bills that were passed out of the financial services committee await. The bill states that a privately insured credit union will be considered to have met the eligibility criteria for FHLB membership if—six months after its application date—the state supervisor has failed to act upon the application. If H.R. 3584 is approved by the full House, it will move to the Senate for consideration.

 
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'BIG DATA' SPOTLIGHT: RISK OR REWARD updated 10/22/14 12:06 PM
Three Panelists Share Opinions
With Alessandro Acquisti as moderator, Wednesday’s audience was treated to a lively discussion—and a bit of back-and-forth debate—on the use of “big data” at credit unions and its ramifications.

SPEAKER DELVES INTO DATA PRIVACY updated 10/22/14 11:57 AM
The Credit Union Connection
As the Big Data Panel during REACH 2014 kicked off on Wednesday, it was apparent “big data” is everywhere and infiltrates all facets of our lives. But how much do consumers value their privacy, and what does it mean for credit unions?

SOCIAL CHARM: INGREDIENT FOR SUCCESS updated 10/22/14 07:59 AM
Chen Lizra at REACH
“Engagement” is one of the top buzz words circulating around REACH 2014—and TED speaker, business consultant, and author Chen Lizra shared some unique insights during the general session on Tuesday. Her buzz word: “social charm.”

INNOVATION PANEL SPURS TAKE-AWAYS updated 10/22/14 05:21 PM
Three CU Industry Perspectives
Attendees at REACH 2014 received a plethora of ideas from Tuesday’s innovation panel to take back to their credit unions—not the least of which included more interaction between employees and leaders, and free-flow of ideas from the bottom up.