Capital Access for Small Community Financial Institutions would increase home loan availability
Washington, DC – May 7, 2014 – (RealEstateRama) — Today legislation for which U.S. Congresswoman Joyce Beatty (OH-03) serves as the Democratic lead co-sponsor passed the House by a unanimous vote of 395-0. The Capital Access for Small Community Financial Institutions, H.R. 3584, led by Rep. Beatty and Rep. Stivers (OH-15), would increase capital liquidity for privately insured credit unions. As the lead Democrat on the legislation Rep. Beatty was instrumental in securing support and guiding the legislation.
“Today’s bi-partisan success is an example of what Congress can do when we work together,” said Rep. Beatty. “Congressman Stivers and I identified a need in our community and crafted legislation to enhance capital access for small community financial institutions in our state and across the country.”
H.R. 3584 would allow privately-insured credit unions to apply for membership in the Federal Home Loan Bank System, providing individuals and businesses greater access to credit in a tight credit market. The additional capital would allow privately-insured credit unions to either make more home loans or reduce the interest rates charged on home loans. Currently, there are 132 privately-insured credit unions located in nine states across the country.
“This legislation is narrowly focused to allow these small credit unions the opportunity to access the secondary financial markets that are so vital to sustaining our economic recovery. I am proud to lead legislation that would sustain the housing market recovery and bolster our economy,” said Rep. Beatty.
During consideration of the legislation in the Financial Services Committee, concerns were raised about the legislation’s interaction with the National Credit Union Administration. Additional concerns were raised about the capital reserves held by the private-insurer of these credit unions. Rep. Beatty led the charge to amend the text, resolving these issues and garnering unanimous support for the passage out of Committee.
Rep. Beatty’s remarks on the House Floor in support of H.R. 3584 are available here.