[Congressional Record Volume 161, Number 79 (Thursday, May 21, 2015)]
[Senate]
[Page S3243]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN:
  S. 1440. A bill to amend the Federal Credit Union Act to exclude a 
loan secured by a non-owner occupied 1- to 4-family dwelling from the 
definition of a member business loan, and for other purposes; to the 
Committee on Banking, Housing, and Urban Affairs.
  Mr. WYDEN. Mr. President, most of us have heard the metaphor that 
small businesses are the engines that power our economy. What we don't 
hear people talk about as much is the fuel that feeds the engines: 
capital. Without capital, entrepreneurs cannot see their ideas to 
fruition, successful business owners cannot expand to meet the needs of 
the market, and eager job seekers must take their skills elsewhere. 
Without capital, Main Street falters.
  Today, more than 7 years after the start of the Great Recession and 
many policy reforms later, access to capital remains a challenge that 
stands in the way of small business growth, economic development and 
job creation in Oregon and across the country. Despite this, government 
regulation continues to tie the hands of many potential lenders; 
namely, credit unions. According to some estimates, credit unions could 
lend an additional $16 billion to small businesses, helping them create 
nearly 150,000 new jobs in just 1 year if Congress loosened restraints 
on credit union business lending.
  With this in mind, I am pleased to introduce today the Credit Union 
Residential Loan Parity Act, which would increase access to capital by 
exempting certain loans from the member business lending cap imposed on 
credit unions. Currently, loans made for one- to four-person, non-owner 
occupied housing are treated as business loans when they are made by 
credit unions. As such, these types of loans count against a credit 
union's business lending cap, and thereby limit a credit union's 
ability to provide loans to small businesses. My legislation would 
address this issue by allowing credit unions to treat these types of 
loans as residential loans--as they are when they are made by other 
financial institutions--therefore exempting these loans from the 
business lending cap. In doing so, this legislation would increase the 
availability of business capital, providing greater opportunities for 
small businesses to receive credit union loans to help them continue to 
grow and expand, create jobs and support our local economies.
  I am hopeful that this legislation will be received by colleagues for 
what it is: a simple step to help ensure America's small businesses 
have access to the fuel they need to power our economy. It is my hope 
that the Senate will pass this legislation swiftly.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1440

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Credit Union Residential 
     Loan Parity Act''.

     SEC. 2. TREATMENT OF A NON-OWNER OCCUPIED 1- TO 4-FAMILY 
                   DWELLING.

       (a) Removal From Member Business Loan Limitation.--Section 
     107A(c)(1)(B)(i) of the Federal Credit Union Act (12 U.S.C. 
     1757a(c)(1)(B)(i)) is amended by striking ``that is the 
     primary residence of a member''.
       (b) Rule of Construction.--Nothing in this Act or the 
     amendment made by this Act shall preclude the National Credit 
     Union Administration from treating an extension of credit 
     that is fully secured by a lien on a 1- to 4-family dwelling 
     that is not the primary residence of a member as a member 
     business loan for purposes other than the member business 
     loan limitation requirements under section 107A of the 
     Federal Credit Union Act (12 U.S.C. 1757a).
                                 ______