[Congressional Record Volume 163, Number 58 (Tuesday, April 4, 2017)]
[Senate]
[Page S2366]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself, Ms. Murkowski, Ms. Warren, and Mr. 
        Markey):
  S. 836. 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, and Wall Street keeps the 
advantage.
  Today, more than 9 years after the start of the great recession and 
many policy reforms later, access to capital remains a challenge. This 
capital drought hampers 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 willing small 
businesses lenders--namely, credit unions. According to some estimates, 
credit unions could lend an additional $11 billion to small businesses 
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 with Senator Murkowski. This bill 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, 
effectively limiting a credit union's ability to provide loans to small 
businesses. Our legislation would address this issue by allowing credit 
unions to treat these types of loans as residential loans--the same 
treatment these kinds of loans receive when made by other financial 
institutions. In effect, the bill would exempt residential loans from 
the business lending cap. This exemption would increase access to 
capital for small businesses, which in turn would create jobs and grow 
our local economies. In addition to generally increasing credit union 
lending, our legislation would directly free up capital for small 
businesses that make much needed investments in rental housing.
  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. 836

       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).
                                 ______